Naira Extends Rally, Official Rate Close at N1329 to USD
The Nigerian naira extended positive value appreciation against western currencies at the foreign exchange market on Wednesday, closing at N1329 to the US dollar (USD).
The movement indicates continued stability in the FX market, with the naira maintaining a relatively firm position around the ₦1,330/US$ level.
The local currency unit maintained momentum against major currency due to strong FX inflows, and low demand for imports ahead of 2027 elections, some analysts said.
Still, activities of financial institutions as market makers at the Nigerian foreign exchange market (NFEM) remains FX heavy, though interbank US dollar turnover moderated midweek.
Transactions were conducted between N1323 and N1336 per dollar at the official window, before settling at the NFEM rate of N1329.6862. Interbank FX deals also reduced to 105 from 139.
NFEM interbank FX turnover declined by about 33% to $93.655 million, from $139.454 million reported for the previous day. FX traders are projecting N1300 for exchange rate for 2026 following recent rally. This is as shift away from an average Broadstreet projection of N1350.
The latest round of value appreciation was supported by strong FX inflows, with Central Bank recent disclosure that remittance near about $1 billion in a month.
With elevated oil prices, Nigeria’s external reserves is anticipated to top $54 trillion in the coming days, highest on record since 2008.
Oil prices were largely steady on Thursday as investors assessed the latest escalation in the U.S.-Iran conflict against signs that the immediate risk of a broader disruption to Middle East supplies may be contained.
Brent crude futures fell 0.13% to $95.50 a barrel, while U.S. West Texas Intermediate crude edged up 0.04% to $91.05 a barrel. The benchmarks have remained volatile this week after renewed military strikes between the United States and Iran raised concerns over oil supplies from the region.
The latest moves followed a volatile session on Wednesday, with both benchmarks swinging sharply, moving within a roughly $3 range as traders assessed developments in the Middle East.
The latest military escalation has added a fresh layer of uncertainty to an already fragile oil market. The United States and Iran exchanged their most intense attacks since July, raising concerns that the conflict could widen and threaten energy infrastructure and shipping routes.
