Naira Bulls Maintain Positive Outlook on Exchange Rate

Naira Bulls Maintain Positive Outlook on Exchange Rate

Naira bulls at the Brroastreet have maintained a positive outlook on the exchange rate amidst geopolitical dislocation that has pushed oil prices above $110 on Monday.

A slew of FX analysts across Broad Street find the naira outlook attractive amid rising US dollar demand following the Middle East war.

FX traders said that despite the latest decline in external reserves, the buffer to keep the naira strong versus the dominant US dollar remains sufficient, with a net FX reserve position of $30-35 billion.

With data showing a favourable balance of payments position, the nation’s foreign reserves are estimated to cover 10 months of imports based on the latest trade records.

Nigeria saved a significant amount with the removal of the petrol subsidy, while onboarding Dangote Refinery has drastically reduced oil import payments.

The Naira appreciated by N12.33 against the US dollar, closing at N1,353.90/US$1 last week. In the parallel market, the currency also appreciated by 0.71% to close at N1,405.00/US$1.

Despite appreciation in both markets, the premium between them increased to N51.10/US$1 from N48.77/US$1 the previous week, indicating continued demand pressure in the informal FX segment.

Meanwhile, gross external reserves declined by US$143.34 million to US$49.83 billion as of Tuesday, 17 March 2026, according to CBN data.

Looking ahead, Coronation Merchant Bank’s research subsidiary expects the Naira to trade within a relatively stable range in the near term, supported by sustained FPI inflows and improved exporter participation in the FX market. Probe: NGX Regco Cuts Zichis Agro-Allied Share Price by 50%