Naira slides as weekly dollar liquidity extends decline

The naira closed weaker last week as dollar liquidity in the official market declined by 10.29 percent, according to data from Lagos-based securities exchange FMDQ.

In the FX Spot and Derivatives markets, the total turnover for the week-ended August 23, 2024, was $814.17 million, a decrease of 10.29% ($93.36 million) from $907.53 million reported for the week-ended August 16, 2024, according to a report on Saturday.

FMDQ said: “The week-on-week decrease in total turnover was jointly driven by the 9.29% ($83.23 million) decrease in FX Spot turnover, which recorded a total value of $812.26 million, compared to $895.49 million recorded in the week-ended August 16, 2024, and the 84.14% ($10.13 million) decrease in FX Derivatives turnover.

“The decrease in FX Derivatives turnover was solely driven by the 84.14% ($10.13 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.

“For the week-ended August 23, 2024, the average Nigerian Autonomous Foreign Exchange Fixing was $/₦1,590.67, compared to $/₦1,578.54 recorded in the week-ended August 16, 2024.”