#Currency || Naira Cools After Ten‑Day Gains as Dollar Demand Rises

 

Naira Cools After Ten‑Day Gains as Dollar Demand Rises

The Nigerian naira eased on Thursday after a strong ten‑day rally, as renewed demand for the U.S. dollar pressured the local currency across both the official and parallel foreign‑exchange markets.

Naira Slips in Official Market

Fresh data from the Central Bank of Nigeria (CBN) showed that the naira weakened by ₦7.78 to close at ₦1,366.06 per dollar, representing a 0.6% decline from ₦1,358.28 recorded in the previous session.

The pullback marks the first notable slowdown after a sustained stretch of appreciation driven by improved FX inflows and tighter monetary conditions.

Parallel Market Also Softens

In the informal market, the naira also lost ground. Market operators reported trades at ₦1,452 per dollar, slightly weaker than ₦1,450 recorded the previous day. The mild depreciation reflects persistent retail demand for dollars despite recent improvements in liquidity.

External Reserves Continue to Strengthen

Interestingly, the currency’s retreat comes at a time when Nigeria’s external buffers are expanding. CBN figures show that gross external reserves rose to $46.80 billion as of February 4, 2026, up from $46.70 billion a day earlier.

The steady buildup in reserves signals stronger capacity to meet foreign obligations, support FX interventions, and reinforce investor confidence in the broader macroeconomic outlook.

What This Means for the Market

Analysts note that short‑term fluctuations are expected as the FX market adjusts to shifting demand patterns. However, the continued rise in external reserves provides a positive backdrop for medium‑term currency stability.

With policymakers maintaining a focus on liquidity, transparency, and reserve accretion, investors will be watching closely to see whether the naira can regain momentum in the coming sessions.

Naira Cools OFF