The naira continued its downward slide on Tuesday, March 3, 2026, closing at ₦1,390/$ in the official foreign exchange market.
This drop extends nearly two weeks of continuous depreciation, highlighting growing pressures on the local currency, according to data from the Central Bank of Nigeria.
Naira Slides Further
Since February 17, the naira has weakened steadily, trading at ₦1,337/$ before slipping incrementally over daily sessions.
By March 3, it had fallen to ₦1,390/$, reflecting a consistent decline driven by rising demand for dollars amid limited supply.
Market Pressures Mount
Market analysts note that speculative activity and liquidity constraints have intensified pressure on the naira.
Consequently, the widening gap between official and parallel market rates has created arbitrage opportunities.
Moreover, importers and manufacturers continue to demand dollars faster than the market can supply them.
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Despite the currency’s weakness, the Central Bank emphasises improvements in Nigeria’s reserves.
Governor Olayemi Cardoso reported that net foreign exchange reserves reached $34.8 billion at the end of 2025, while gross reserves climbed to $50.45 billion in February 2026.
Nevertheless, experts warn that daily liquidity challenges remain critical to short-term stability.
Global Factors Influence
Global factors also influence the market.
The U.S. dollar strengthened to a three-month high as geopolitical tensions in the Middle East escalated, while the euro fell to $1.1604.
Meanwhile, the dollar index rose to 99.103, its highest level since November.
Earlier this week, the naira showed tentative signs of stabilising; however, renewed dollar strength pushed it down to ₦1,376/$ on Monday.
For now, the naira faces pressure, navigating the complex interplay between domestic liquidity constraints and global market forces.
