Naira Heads South as Interbank FX Turnover, Deal Count Rise
The Nigerian local currency, the naira, headed south on Wednesday as a surge in international payments eclipsed US dollar volume availability in the official window.
In its daily report, the Central Bank of Nigeria (CBN) indicated that the official spot FX rate depreciated to N1379.0675 per US dollar, down from N1375.7463 quoted the previous day.
With an exchange rate quote of N1370.1904 at the beginning of the week, the official rate has weakened by N9, increasing companies’ costs of dollar payments for offshore goods and services.
FX transactions were consummated between N1376 and N1387 at the Nigeria foreign exchange market (NFEM) on Wednesday, according to forex market data obtained by MarketForces Africa.
The market was liquidity-heavy, but increased demand for foreign payments dragged the exchange rate at the official window,
Traders reported that interbank FX turnover spiked by about 399% on the day to $208.094 million, from $41.736 million the previous day, Also, the number of deals in the interbank market increased sharply to 150, from 47 deals in the previous day,
FX analysts maintain positive expectation about the naira outlook in the second half of 2026 despite the absence of the CBN to support liquidity.
Broadstreet analysts anchored their naira bull position on growing external reserves, saying an increase in oil production would compensate for lower oil prices as Nigeria continue to boost output.
MarketForces Africa reported that Nigeria’s gross external reserves increased to $51.642 billion, based on latest data from the CBN, up from $51.579 billion.
In the global commodity market, oil prices surged after President Donald Trump threatened to bomb Iran for a second day and reimpose the U.S. naval blockade in retaliation for attacks on tankers transiting the Strait of Hormuz.
US West Texas Intermediate futures rose 4.4% to close at $73.52 per barrel. Brent futures, the international benchmark, jumped 5.2% to settle at $78.02.
Speaking at the NATO summit in Turkey, Trump said he considered the ceasefire with Iran over. His comments came after the U.S. bombed the Islamic Republic overnight.
Trump’s threat to bomb and blockade Iran again on Wednesday raised fears in the oil market that renewed fighting could disrupt exports through Hormuz just as they had started to recover. But prices eased off the session highs after Trump later said he did not believe Iran and the U.S. would return to full-scale war.
“I don’t think it’s going to start again,” the president said. “I think it’s going to go very quickly. They hit a couple of ships, and so we hit them much harder. When they hit, we hit 10 times harder.” #Naira Heads South as Interbank FX Turnover, Deal Count Rise#
