Naira Rallies as Interbank FX Turnover, Deals Count Decline
The Nigerian local currency, the naira, rallied at the official window as data showed a sharp decline in interbank forex market transactions and deal count on Wednesday.
This suggests that forex payment demand and market liquidity eased yet were easily matched, thereby strengthening the official Spot FX rate at the Nigeria Foreign Exchange Market (NFEM).
According to the Central Bank’s daily FX report, the exchange rate improved to N1372 per US dollar on Wednesday, amid a lack of significant demand for foreign payments.
Spot FX rate at the official market hovered between N1368 and N1378.5000 during intraday sessions, while interbank deals slowed down sharply, with a 67% decline in FX turnover to $90.303 million from $269.898 million the previous day.
Interbank FX deals count reduced to 91 from 166, reducing pressures on foreign currency supply at the NFEM window. A lower number of deals and turnover suggested that bank customers’ dollar requests eased today, according to analysts.
Nigeria’s gross external reserves closed the first half of 2026 at $51.46 billion following a sequence of additional FX inflows from across key sources.
Oil prices remained under pressure on Wednesday as traders closely monitored negotiations between Iran and the United States while waiting for fresh data on US crude oil inventories.
Brent futures and US West Texas Intermediate (WTI) crude both declined as investors assessed whether easing tensions in the Middle East could improve global oil supply.
Today, Brent crude futures dropped by 62 cents, or around 0.9%, to $72.33 per barrel at 1156 GMT. US West Texas Intermediate crude futures fell by 38 cents, or about 0.6%, to $69.12 per barrel, marking their lowest level since February 27.
The reopening of shipping through the Strait of Hormuz has also reduced fears of major supply disruptions. Market participants are now focusing on inventory data, diplomatic developments, and future supply conditions to understand where oil prices may move in the coming weeks.
S&P Cuts Nigeria’s Growth Projection, Raises Inflation Expectation
