Naira Depreciates to N1,390/$ as USD Strengthens Amid Liquidity Concerns

The Nigerian Naira closed at N1,390 per US dollar on March 3, 2026, extending a two-week depreciation streak. This follows a steady decline from N1,337/$ on February 17, with incremental losses recorded daily. Market data attributes the pressure to liquidity concerns, a strengthening US dollar, and persistent dollar supply constraints. Analysts note the widening gap between official and parallel market rates creates arbitrage opportunities. Despite improved external reserves ($34.80 billion net as of 2025, projected to reach $51.04 billion in 2026), immediate liquidity challenges remain critical. The currency's weakness contrasts with Nairametrics' earlier report of signs of stability, though geopolitical tensions in the Middle East continue to drive USD strength globally.

SOURCE: https://nairametrics.com/2026/03/04/naira-hits-n1390-extends-two-week-decline-in-official-market/