Naira Rises Amidst Interbank FX Turnover Slowdown
The naira rose against the US dollar at the Nigerian foreign exchange market (NFEM) amidst reduced interbank FX turnover on Monday. The local currency unit traded against the dollar at N1368 in the official window, gaining N2 per greenback from N1370 quoted at the previous close.
The spot FX rate hovered between N1366 and N1371.9000 per dollar during the trading session, as interbank activity eased from the previous close. According to data released by the Central Bank, interbank FX turnover printed at $54.180 million across 70 deals, from $70.430 million.
The official window has continued to see liquidity fluctuations amidst sustained FX inflows from foreign portfolio investors, exporters, non-bank corporates and other sources.
With Nigeria’s rising external reserves, the market anticipates the naira will remain largely stable after the authorities signal a reduction in local-currency appreciation. In the first half of 2026, the Central Bank signalled its intention to slow the naira rally by purchasing US dollars from the market.
Also supporting the naira outlook, the nation’s gross external reserves continue to accelerate. Updated data from the monetary authority showed that gross external reserves increased to $ 51.525 billion from $51.549 billion.
In the global commodity market, oil prices rose on Tuesday as traders looked beyond easing geopolitical tensions in the Middle East and shifted their focus to supply recovery and the outlook for global demand.
While the geopolitical risk premium that had driven prices sharply higher during the Iran conflict has largely faded, concerns over the pace of supply growth and demand recovery continue to shape market sentiment.
Brent crude futures gained 0.7% to $72.5 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 0.6% to trade near $69 a barrel after both benchmarks settled near pre-Iran war levels in the previous session. The gains reflected a market finding support from improving demand expectations but remaining wary of rising supply.
The recovery in oil supply has emerged as the dominant theme after the easing of immediate geopolitical risks. The United Arab Emirates raised crude production above 3.8 million barrels per day in June, the highest level since April 2020 and above pre-conflict levels, according to reports.
At the same time, Gulf oil exports are gradually normalising as shipping through the Strait of Hormuz resumes, although tanker traffic remains below historical averages. Risk-off Sentiment Drives Nigerian Bonds Yield Higher
