The naira strengthened on Tuesday and broke a key level in the foreign exchange market.
It closed at ₦1,349.5 per dollar in the official window.
Naira Breaks Key Exchange Level
This marked an improvement from ₦1,354.9 on Monday.
As a result, the currency moved below ₦1,350 for the first time since May 29, 2024.
On that date, traders quoted it at ₦1,329.65 per dollar.
Reserves Boost Liquidity
The appreciation reflects steady progress in the official market.
Meanwhile, rising external reserves have improved foreign exchange liquidity.
In addition, stronger inflows have supported the currency’s recovery.
Higher oil export earnings boosted dollar supply.
Similarly, remittances and portfolio investments increased market liquidity.
Analysts link the gains to tighter monetary conditions.
For example, Dr Joseph Mbada said the move signals stronger supply conditions.
Read Also: Naira Weekly Outlook: Forecast Predicts ₦1,350–₦1,420/$
He explained that improved inflows reduced speculative demand in the market.
Moreover, tight policy eased exchange rate volatility.
However, pressure persists in the parallel market segment.
The street rate stood at ₦1,443.68 per dollar on Tuesday.
Earlier, it traded at ₦1,443.40 per dollar on Monday.
Although the gap has narrowed, it remains significant.
Focus Shifts To MPC
The development comes before the next MPC meeting.
The Central Bank will meet on February 23-24, 2026.
During the meeting, policymakers will assess inflation, liquidity and exchange rate trends.
In November 2025, the MPC held the rate at 27%.
Earlier in September, the committee cut the rate from 27.5% to 27%.
The bank maintains a tight stance to curb inflation.
At the same time, it aims to stabilise the naira.
Overall, the move below ₦1,350 signals cautious but clear progress.
Now, markets await further policy direction.
