[TITLE>Naira Strengthens as Interbank FX Activity and Transaction Volume Decline]
The Nigerian naira strengthened at the official exchange window on Wednesday, with data showing a significant drop in interbank foreign exchange transactions and deal volumes, according to central bank figures.
The currency improved to N1372 per US dollar amid reduced demand for foreign payments and easing market liquidity. The spot FX rate at the official market traded between N1368 and N1378.50 during intraday sessions, while interbank turnover plunged 67% to $90.303 million from $269.898 million the previous day.
The number of FX deals also fell sharply to 91 from 166, alleviating pressure on foreign currency supply at the Nigeria Foreign Exchange Market (NFEM) window. Analysts noted the decline in transaction volume suggests reduced demand from bank customers for dollar-denominated transactions.
Nigeria’s gross external reserves stood at $51.46 billion at the end of the first half of 2026, supported by ongoing FX inflows from multiple sources.
Oil prices slipped on Wednesday as traders monitored diplomatic developments, including negotiations between Iran and the United States, alongside upcoming data on US crude inventories. Brent crude futures eased by 62 cents, or 0.9%, to $72.33 per barrel, while US West Texas Intermediate dropped 38 cents, or 0.6%, to $69.12 per barrel—the lowest since February 27.
The reopening of shipping through the Strait of Hormuz has also helped reduce concerns over major supply disruptions. Market participants are now focusing on inventory reports, geopolitical developments, and future supply outlooks to gauge the trajectory of oil prices in the weeks ahead.
