By Boluwatife OshadiyA | July 2, 2026
Key Points
- The naira appreciated to ₦1,372/$ at the official market as interbank FX turnover fell by 67%
- Total interbank foreign exchange transactions dropped to $90.30 million, while deal count declined from 166 to 91
- Nigeria’s external reserves ended the first half of 2026 at $51.46 billion, providing continued support for FX market stability
Main Story
The naira strengthened against the United States dollar at the official foreign exchange market on Wednesday after a sharp decline in interbank foreign exchange transactions and deal volume signalled easing demand for dollars.
According to the Central Bank of Nigeria (CBN) daily foreign exchange report, the local currency appreciated to ₦1,372 per US dollar at the Nigerian Foreign Exchange Market (NFEM), supported by lower demand for foreign currency payments and improved market balance.
The official spot exchange rate traded within an intraday range of ₦1,368 to ₦1,378.50 per dollar, while interbank FX turnover plunged 67% to $90.30 million, down from $269.90 million recorded in the previous trading session. The number of completed interbank transactions also declined significantly to 91 deals, compared with 166 deals a day earlier.
Market analysts said the lower transaction volume suggests that demand for foreign exchange from businesses and bank customers eased during the session, allowing available liquidity to adequately meet market needs and support the naira’s appreciation.
The development comes as Nigeria’s gross external reserves closed the first half of 2026 at $51.46 billion, reflecting sustained foreign exchange inflows from oil receipts and other external sources that have helped strengthen the country’s reserve position.
Meanwhile, global oil prices remained under pressure as investors monitored diplomatic talks between Iran and the United States, alongside expectations for fresh US crude inventory data. Brent crude fell 0.9% to $72.33 per barrel, while West Texas Intermediate (WTI) declined 0.6% to $69.12 per barrel, as easing geopolitical tensions reduced concerns over potential supply disruptions.
“The lower turnover and reduced number of FX deals indicate that demand pressures eased during the trading session, allowing available liquidity to support the naira at the official market,” market analysts said.
What’s Being Said
Analysts say Wednesday’s appreciation reflects improving market conditions rather than a significant increase in dollar supply, noting that softer demand played a key role in strengthening the official exchange rate.
Currency market observers also point to Nigeria’s stronger external reserves as an important buffer supporting the CBN’s broader foreign exchange management strategy, even as global oil prices remain volatile.
What’s Next
- Investors will monitor movements in Nigeria’s external reserves and official FX market liquidity for signs of sustained currency stability.
- Market participants are awaiting fresh US crude oil inventory data and developments in Iran-US negotiations, which could influence global oil prices and Nigeria’s export earnings.
- Analysts will continue tracking demand patterns at the NFEM to assess whether the naira can sustain its recent gains in the coming trading sessions.
Bottom Line
The Bottom Line: The naira’s latest appreciation suggests that easing demand for foreign currency is helping stabilise the official market, even as global oil prices remain under pressure. Sustaining this momentum, however, will depend on consistent FX inflows, healthy external reserves, and the Central Bank’s ability to maintain liquidity in Nigeria’s foreign exchange market.
