Nigeria's foreign exchange market falls 51.29% to $1.81 billion
By the AFREEQUE newsroom, based on Punch
Illustrative image · Atlantic Ambience · Pexels · Licence PexelsNigeria's foreign exchange market recorded $1.81 billion in transactions during the week ended 6 November, a 51.29% week-on-week decline. Spot transactions accounted for most of the fall, according to FMDQ data cited by Punch.
Nigeria's foreign exchange market recorded a sharp decline in dollar transactions during the week ended 6 November, with turnover falling 51.29% to $1.81 billion from $3.71 billion a week earlier, according to FMDQ data cited by Punch. The naira also weakened slightly, while average daily transaction volume fell to $361.67 million from $742.51 million the previous week.
Spot transactions accounted for most of the contraction, with turnover falling 50.91% to $1.79 billion, representing about 97.3% of the total decline in dollar transactions, according to FMDQ, which tracks transactions between authorised dealers and their clients. Forward transactions fell 69.93% to $22.20 million from $73.83 million, with their share of the market declining from 1.99% to 1.23%.
Forward exchange rates also declined across all maturities recorded. The one-month rate fell 0.2% to 1,370.19 naira per dollar, the three-month rate by 0.2% to 1,405.78 naira, and the six-month rate by 0.2% to 1,455.88 naira. The one-year rate fell 0.6% to 1,557.65 naira per dollar, the largest change among the maturities listed.
The weekly contraction exceeded that recorded in July, when foreign exchange turnover fell 46.57% to $1.63 billion. Despite recent movements, analysts expect relative naira stability in the short term, supported by Nigeria's foreign exchange reserves.
