Naira Depreciates to N1,386 as Interbank Turnover Slides
The naira depreciated to N1,386.65 per US dollar at the Nigerian foreign exchange market (NFEM) as interbank turnover reduced from the previous week’s close.
According to daily FX data from the Central Bank, the official rate was quoted at N1386.6573 on Tuesday, down from N1,380.79 per dollar last week.
FX liquidity declined with the exchange rate quoted between the intraday high and low of N1,390 and N1,381 per dollar, according to daily FX data published on Tuesday.
NFEM interbank turnover reduced to N48.655 million across 71 deals, from N73.900 million last week, across 87 deals. In the parallel market, channel checks showed that the informal rate was relatively stable at 1,410 per dollar.
Last week, the Naira weakened by 0.016% week on week to close at N1,380.79/US$1. But in the parallel market, it appreciated by 0.70% to close at N1,410.00/US$1.
The gap between the official and parallel markets narrowed to N29.21/US$ from N39.42/US$1 in the previous week. According to CBN data, gross external reserves declined modestly by 0.53% or US$260.36 million, to US$49.18 billion.
The market anticipates the Naira to trade within a relatively stable range in the near term, supported by measured FPI inflows and CBN intervention to anchor short-term volatility.
Oil prices surge as US deadline threat for Iran draws near. Brent hovered around $110 and WTI crude oil extended its powerful rally, climbing $4.85 to settle near $117.75—marking its highest close since 2022.
However, the move proved short-lived. Prices quickly retreated back below $113 as markets reacted to fresh signals suggesting a possible diplomatic path between the U.S. and Iran.
The sharp reversal highlights how sensitive oil markets remain to geopolitical headlines, with sentiment shifting rapidly on even minor developments.
Analysts said the recent surge reflects growing concern about supply disruptions tied to the Middle East conflict, particularly around the Strait of Hormuz—a critical route for global oil shipments.
Despite these risks, equity markets have shown relative resilience, suggesting investors still expect the conflict to remain short-lived. Oil traders, however, are pricing in a far more severe scenario, with the potential for prolonged supply chain disruption.
Recent developments have introduced cautious optimism. Iran’s Tehran Times initially reported that diplomatic channels were closed, but later revised its stance, indicating that talks with the U.S. remain possible. Equity Investors Gain N209bn as FirstHoldco, GTCO Rally
