Naira steadies at N1,370/$ as CBN reserves grow to $51B, inflation drops below 30%
The Nigerian Naira trades around N1,370/$ in mid-2026, having stabilized after 2024-2025 volatility and staying below the N1,400/$ mark. Major institutes including Chartered Institute of Stockbrokers and CFG Advisory project it will remain within N1,350-N1,520/$ for the rest of 2026, though further gains are possible with sustained forex reserves and reforms.
This stability stems from Nigeria's foreign exchange reserves rising from $45.5 billion in 2025 to approximately $51 billion, giving the CBN stronger capacity to defend the currency against speculation. The central bank maintains a restrictive stance with MPR at 26.67%, which while constraining local business credit, attracts foreign portfolio inflows seeking high yields. Inflation has decisively fallen below its previous 30%+ highs, with PwC, United Capital and LEAF projecting 2026 averages between 15% and 23.8%.
Meanwhile, GDP growth is gradually returning to 4.0%-4.4% as crude oil production averages 1.48 million barrels daily, though much past output was sold forward limiting immediate cash gains. For businesses and households, this means more predictable import costs and travel expenses, but high interest rates still constrain local borrowing and expansion. Will you lock in current forex rates for upcoming overseas payments, consider fixed-income investments benefiting from high MPR, or delay naira-denominated projects due to costly domestic credit?