Nigeria's FX turnover falls 51% to $1.81bn
Dollar transactions in Nigeria's foreign exchange market dropped by $1.90bn in the week ending November 6.
Nigeria’s foreign exchange market saw dollar transactions fall by 51.29 per cent to $1.81bn in the week ended November 6, down from $3.71bn the previous week. This $1.90bn reduction in weekly trading value occurred alongside a slight depreciation of the naira. Data from FMDQ shows average daily FX turnover dropped to $361.67m from $742.51m.
Spot transactions, involving immediate currency delivery, accounted for most of the decrease, falling 50.91 per cent to $1.79bn. Forward transactions also weakened, dropping 69.93 per cent to $22.20m. The one-month forward rate depreciated by 0.2 per cent to N1,370.19 per dollar, while the one-year rate fell by 0.6 per cent to N1,557.65 per dollar.
Analysts expect the naira to remain stable in the short term, supported by FX reserves and Nigeria’s current account surplus. The domestic financial market anticipates N148.57bn from Treasury bills maturities and N774.53bn from Open Market Operations maturities this week. This combined N923.10bn inflow could affect liquidity and investor demand for FX.
Why it mattersNigeria's foreign exchange market experienced a significant drop in dollar trading, impacting the availability and cost of foreign currency.