Currency markets opened the second full week of February with a familiar theme: calm. Early trading on Monday showed the Nigerian naira extending its recent run of stability against the United States dollar, reinforcing expectations that current monetary and foreign exchange policies are continuing to anchor the market.
At the official window, activity in the Nigerian Foreign Exchange Market (NFEM) pointed to a modest but notable strengthening of the local currency. The naira traded around ₦1,363.84 to the dollar in early sessions, edging up from Friday’s closing level of ₦1,366.96. Movements during the morning were narrow, with rates confined to a tight band between ₦1,363.35 and ₦1,363.84, suggesting limited speculative pressure as the week began.
Analysts link this steadiness to the Central Bank of Nigeria’s sustained oversight of the Electronic Foreign Exchange Matching System (EFEMS), which has improved price discovery and reduced disparities across market segments. With inflation reported at about 15.15 per cent and the Monetary Policy Rate held at 27.00 per cent in early 2026, the naira has continued to trade comfortably below the psychologically significant ₦1,400 threshold, a level many market participants now view as a near-term ceiling rather than an imminent risk.
Conditions in the parallel market have broadly echoed developments in the official window. Across key commercial centres including Lagos, Abuja and Kano, Bureau De Change operators quoted the dollar within the ₦1,440 to ₦1,455 range. Although this still represents a premium to the NFEM rate, the spread remains far narrower than the sharp swings recorded toward the end of 2025.
Traders in the informal segment report that demand linked to retail imports and personal travel is being adequately met, easing the pressure that often fuels abrupt price jumps. The relative absence of speculative buying at the start of the week has been interpreted as further evidence that the central bank’s policy of directing large corporate demand toward the official market is helping to stabilise the broader foreign exchange landscape.
Taken together, opening indicators show the naira beginning the week with a firm footing: the official market opening and current rates converging around ₦1,363.8, while the parallel market trades steadily within the mid-₦1,400s. Attention now turns to foreign exchange inflows and market liquidity over the coming days, as investors assess whether the currency can test support closer to ₦1,360. For now, sentiment remains cautiously optimistic, with the naira expected to maintain its defensive stance against the dollar as February trading unfolds.