Nigeria has recently witnessed a notable increase in foreign exchange (FX) turnover, marking a pivotal moment in the country’s economic landscape. According to recent data from Spectra, the Nigerian FX market experienced a remarkable upswing of over 40% in the past week alone.
The total FX turnover surged to $1.03 billion, reflecting a $292.75 million increase from the previous week’s $740.92 million. This achievement is significant as it surpasses the $1 billion mark for the first time since June, when the turnover reached $1.05 billion.
Beginning in July, the FX turnover exhibited promising growth. At the start of the month, on July 1, 2024, turnover stood at $122.31 million. By the following week, it escalated to $133.46 million, indicating a burgeoning market activity.
Comparing weekly performances highlights substantial fluctuations. For instance, the turnover on July 2, 2024, amounted to $213.31 million, whereas by July 8, it decreased to $188.19 million, marking an 11.77% decline.
Wednesday, July 10, 2024, stood out with a remarkable 106% increase in FX turnover, soaring to $237.70 million. Similarly, Thursday, July 4, 2024, saw turnover at $173.51 million, which surged to $348.82 million by July 11, reflecting a notable 101.03% increase.
Several factors contributed to these fluctuations, including interventions by the Central Bank of Nigeria (CBN), which involved the sale of dollars on the official market. These interventions aimed to stabilize the FX market amidst varying demands.
Despite promising gains, the week ended on a downturn with FX turnover plummeting by 63.73% on Friday, settling at $126.50 million. Nevertheless, proactive measures such as the CBN’s direct sales of dollars to authorized dealers at N1540/$1 on July 12 underscore ongoing efforts to manage market volatility.
