The Nigerian foreign exchange market witnessed a notable increase in trading volume last week, with total turnover at the interbank window rising by 15.8% to $2.787 billion, up from $2.407 billion the previous week.
According to data from the Central Bank of Nigeria (CBN), the $380 million jump in activity signals stronger market participation even as the naira came under mild pressure.
Naira Loses Ground
At the official window, the naira depreciated by 0.76% to close at N1,380.93 per dollar, compared to N1,370.45 the prior week. In the parallel market, it weakened by 1.08% to N1,388 per dollar.
Despite the slight depreciation, analysts remain optimistic about near-term stability, citing the steady build-up in Nigeria’s external reserves, which rose by 0.37% to $51.25 billion.
Oil Market Softens
Global crude oil prices trended lower during the week as geopolitical tensions in the Middle East eased and shipping activity through the Strait of Hormuz improved. Brent crude settled around $72.98 per barrel, while West Texas Intermediate traded at $69.55. Nigeria’s Bonny Light crude dropped 10.93% week-on-week to $72.70 per barrel.
A temporary spike occurred following reports of an Iranian strike on a commercial vessel, but prices quickly moderated. Markets later reacted to US Central Command strikes on Iranian military targets, though optimism about a potential return to normal shipping flows helped limit broader volatility.
The combination of higher foreign exchange turnover and strengthening reserves suggests improving liquidity conditions in the market. However, the naira’s performance will continue to be influenced by global oil price movements, sustained CBN interventions, and broader macroeconomic developments in the coming days.
