The naira appreciated sharply to close at N1,344 per dollar on Monday, February 16, 2026, at the official foreign exchange market, reflecting renewed optimism and improved liquidity conditions in the FX market.

The local currency also strengthened in the parallel market, closing at N1,395 per dollar, further narrowing the gap between the Bureau De Change (BDC) segment and the official FX window.

Market checks showed that the naira gained N25 in the black market, rising to N1,395 on Monday from N1,420 quoted on Friday.

Analysts said the appreciation was partly supported by improving market expectations following the Central Bank of Nigeria’s decision to reopen the retail foreign exchange window for BDC operators.

The move is expected to boost dollar supply through banks and ease pressure on the parallel market.

On Friday, the exchange rate gap had already started narrowing as BDC operators prepared to access fresh dollar supply from deposit money banks, signalling a possible reduction in speculative demand.

Meanwhile, exchange rates for other major currencies at the BDC market on Monday showed the British pound sterling trading at N1,950, while the euro exchanged at N1,650.

The Canadian dollar closed at N1,030, while the Chinese yuan was quoted at N200.

Market observers said the narrowing spread between the official and parallel market rates could help improve confidence in the naira and reduce arbitrage opportunities, provided the CBN sustains FX supply and policy consistency in the coming weeks.

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