Naira stabilizes between N1,350-$N1,400 as CBN uses reserves to counter geopolitical pressure

The Nigerian Naira shows signs of stability, trading between N1,350 and N1,400 per dollar this week despite global tensions. The Central Bank of Nigeria (CBN) is leveraging its record $50.45 billion reserves to manage liquidity and counter pressure from Middle East conflicts. Markets predict this range will hold through the week, though further escalation could push rates toward N1,450. CBN's recent 0.5% MPR cut to 26.5% signals confidence in economic stability, supported by 10 months of FX cover. Oil production nearing 1.6 million barrels daily and Dangote Refinery's 1.4 million bpd capacity boost reserves, though oil theft remains a challenge. The Israeli-Iranian conflict drives oil prices up 10% to $75/bbl, aiding reserves but raising import costs. Nigeria's 2026 budget relies on $64.85/bbl oil, with reserves expected to stay between $45-51 billion.

SOURCE: https://nairametrics.com/2026/03/02/naira-eyes-n1400-amid-rising-geopolitical-tensions/