Nigeria’s foreign exchange market recorded a sharp increase in trading activity, with total turnover on the Nigerian Foreign Exchange Market (NFEM) rising to $1.45 billion on Thursday, September 10.
The figure represents a 167.2% surge compared with the $544.11 million recorded on September 9, according to data from the Central Bank of Nigeria (CBN).
The latest turnover was also 55.8% higher than the $933.78 million recorded on September 8, marking a significant rebound in FX market activity after turnover fell below $1 billion in the previous two sessions.
The September 10 figure was the highest daily level since July 21, when turnover reached $1.53 billion. It was, however, about 5.1% below that July peak.
The increase in turnover came alongside a rise in the number of transactions, with 470 deals recorded on September 10, compared with 276 the previous day.
Interbank activity also strengthened, with 234 interbank deals recorded, up from 86 on September 9.
Despite the stronger trading activity, the naira weakened slightly during the session. The currency closed at N1,328 per dollar, compared with N1,334 on September 9, representing a N6 appreciation according to some reports, while trading between N1,322.71 and N1,333. The weighted average rate stood at N1,328.22 per dollar.
The surge in activity points to improved liquidity in the official FX market following reforms introduced by the Central Bank.
