Nigeria’s currency recorded a significant breakthrough on Wednesday, February 18, 2026, as the exchange rate against US dollar saw the Naira appreciates to its highest level in recent months. Data obtained from the FMDQ Securities Exchange, which oversees the Nigerian Autonomous Foreign Exchange Market, revealed that the local currency gained remarkable ground, closing at N1,350 per dollar.
This surge represents a substantial improvement from the previous trading session where the Naira hovered around the N1,480 mark, signaling a renewed investor confidence and a potential stabilization of the nation’s volatile forex landscape.
Market analysts attribute this sudden appreciation to the sustained intervention strategies implemented by the Central Bank of Nigeria, which has consistently injected liquidity into the official window to meet the rising demand for invisible transactions. The closing rate of N1,350 indicates a massive N130 gain within a twenty-four hour window, a development that has sent ripples of optimism through the manufacturing and retail sectors.
Financial experts suggest that the narrowing gap between the official and parallel markets is a direct result of the government’s tighter monetary policy and the successful curbing of speculative activities that had previously devalued the local unit.
Parallel market operators in Abuja and Lagos also reported a corresponding shift, with the Naira trading between N1,360 and N1,380 at the close of business. Traders noted that the frantic rush for the greenback observed earlier in the month has cooled significantly as more businesses find it easier to access foreign exchange through formal banking channels.
This cooling effect on the exchange rate against US dollar is expected to have a trickledown impact on the cost of imported goods, potentially easing the inflationary pressures that have burdened Nigerian consumers throughout the first quarter of the year.
Beyond internal interventions, the rise in global oil prices has also bolstered Nigeria’s foreign reserves, providing the apex bank with the necessary ammunition to defend the Naira. The increased supply of dollars from International Oil Companies and heightened foreign portfolio investment inflows have further supported the currency’s trajectory.
Market participants are now closely watching to see if the Naira can sustain this momentum and break below the N1,300 resistance level in the coming weeks, which would mark the most successful recovery period for the currency since the unification of exchange rates.
Government officials have hailed the development as a testament to the effectiveness of the current administration’s economic reforms. However, analysts caution that long term stability will depend on Nigeria’s ability to diversify its export base and reduce its heavy reliance on petrodollars.
For now, the significant drop in the exchange rate against US dollar provides much needed breathing room for the economy, allowing for better fiscal planning and a reduction in the debt servicing burden associated with foreign denominated loans.
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