Naira rises against dollar, FX market turnover falls
The naira pared some of its recent losses against the dollar last week, even as the turnover in the foreign exchange market declined by nearly a third, data from FMDQ Securities Exchange show.
The average Nigerian Autonomous Foreign Exchange Fixing rate stood at N768.66/$, compared to N774.01/$ recorded in the previous week, representing an appreciation of the naira against the dollar by 0.70 percent.
The total turnover in the FX spot and derivatives markets fell by 30.91 percent to $326.44 million from $472.49 million.
“The week-on-week decrease in total turnover was jointly driven by the 30.40 percent ($142.12 million) and 79.88 percent ($3.93 million) decreases in FX spot and FX derivatives turnover, respectively,” the securities exchange said.
It said the decrease in FX derivatives turnover was solely driven by the 79.88 percent ($3.93 million) decline in FX forwards turnover.
The total value of transactions in the FX spot market fell by 30.40 percent to $325.45 million, according to FMDQ.
“There were no trades executed in the Exchange-Traded FX Futures and extant Naira-Settled OTC FX Futures markets for the week-ended October 6, 2023,” it said.
