Naira finishes lower despite boost in dollar supply

The naira closed lower against the dollar this week despite an increase in foreign exchange supply at the official market, data from Lagos-based securities exchange FMDQ shows.

The total turnover in the FX spot and derivatives markets rose by 19.43% to $1.3 billion compared to the previous week. 

The naira fell to an average of 1,580.4 per dollar at the Nigerian Autonomous Foreign Exchange Market from 1,568.76/$.

FMDQ said on Saturday: “The week-on-week (WoW) increase in total turnover was driven by the 19.53% ($212.82 million) increase in FX Spot turnover, which recorded a total value of $1,302.57 million, compared to $1,089.75 million recorded in the week-ended July 19, 2024; offsetting the 100.00% ($0.89 million) decrease in FX Derivatives turnover. 

“The WoW decrease in FX Derivatives turnover was solely driven by the 100.00% ($0.89 million) decrease in FX Forwards turnover, whilst there was continued lack of activity in both the Exchange-Traded FX Futures and Cleared Naira-Settled Non-Deliverable Forwards markets.”