Naira falls further as weekly forex liquidity drops 23%
The naira weakened against the dollar this week as the turnover in the foreign exchange market declined by 22.99 percent.
The total turnover in the FX spot and derivatives markets fell to $795.46 million from $1,032.90 million last week, according to data from FMDQ, a Lagos-based securities exchange.
The average Nigerian Autonomous Foreign Exchange Fixing rate was N1,515.53/$, compared to N1,497.14/S in the previous week.
“The week-on-week decrease in total turnover was primarily driven by the 23.47% ($242.44 million) decrease in FX Spot turnover, which recorded a total value of $790.46 million, compared to $1,032.90million recorded in the week-ended June 28, 2024, offsetting the $5.00 million increase in FX Derivatives turnover,” FMDQ said.
It said the increase in FX derivatives turnover was solely driven by the $5 million increase in FX Forwards turnover, while there was continued lack of activity in both the Exchange-Traded FX Futures and Cleared Naira-Settled Non-Deliverable Forwards markets.
