Reporting by Vanguard indicates that the Nigerian Naira has faced renewed pressure, depreciating to N1,425 per dollar in the official market as of Tuesday. This downturn is largely attributed to the escalating conflict in the Middle East, which has triggered a significant exit of Foreign Portfolio Investors (FPIs) seeking “safe haven” assets.
To mitigate the sharp decline, the Central Bank of Nigeria (CBN) reportedly injected approximately $500 million into the foreign exchange market. Despite these interventions, the gap between the official rate and the parallel market has widened slightly, reflecting heightened speculative activity and global economic jitters.
Validation: Market shifts were also tracked by The Punch and ThisDay. The Punch highlighted that “the indicative exchange rate for the naira rose to N1,425 per dollar,” while ThisDay quoted market analysts saying, “The decline comes amid intensified demand driven by escalating Middle East tensions.”
Echotitbits take: The CBN’s $500m intervention shows a “defense-at-all-costs” strategy for the Naira. However, if the Israel-Iran friction persists, we may see the Naira test the N1,500 mark before the end of the month unless oil prices provide a significant cushion.
Source: BusinessDay – https://businessday.ng/news/article/naira-posts-weekly-loss-as-dollar-strength-and-middle-east-tensions-drive-fx-demand/, March 10, 2026
Photo Credit: BusinessDay
