The foreign exchange turnover in July 2024 stood at N11.48 trillion, about $7.39 billion at the official trading window for the Nigerian currency, higher than the N10.01 trillion recorded in June.
The development was disclosed in the monthly report for July published by the FMDQ Exchange Limited.
In dollar terms, forex market turnover in July recorded a 10.02% monthly increase from $6.72 billion the month before.
However, reports say the naira dipped in value, with the spot rate rising by 4.88% to N72.58, closing at N1,560 per dollar in July from N1,487.74 in June.
According to reports, exchange rate volatility also rose in July as the local currency traded at about N1,500.32 to N1,621.12, compared to the N1,473.66 to N1,510.10 it traded in June 2024.
At the end of the week, the naira’s value to the dollar appreciated to N1,570.14 per dollar, closing the week at NAFEM
The forex turnover stood at $120.81 million with an intra-day high and low of N1,606 per dollar and N1,496, respectively.
Forex turnover is the sum value of all transactions in the foreign exchange market in January, which shows increased trading activities in the FX market during the review period.
Punch reports that a recent report by the Central Bank of Nigeria (CBN) showed that the exchange rate of the naira against the dollar in the FX market dropped by 35.53% to N1,304.73 in the first quarter of 2024, compared to N841.15 recorded in the same period in 2023.
A CBN survey said businesses expect the naira to continue to fall in the next three months, beginning in July but might appreciate it after six months.
The development comes as the apex bank announced a record surge in remittance inflows, hitting $553 million in July 2024, representing a 130% yearly increase compared to 2023.
The CBN said the increase was driven by its recent policies to enhance liquidity in Nigeria’s FX market, including license issuance to new international money transfer organisations (IMTOs).
Senior banker and economic analyst, Janet Ogochukwu, attributed the development to changes initiated by the CBN.
She disclosed that the market always responds positively when there is a surge in FX supplies.
TimesNow.com.ng earlier reported that the Nigerian currency, the naira, opened the new week positively after gaining ground against the US Dollar on Friday, August 23, 2024.
Data from FMDQ securities showed that the Nigerian Autonomous Foreign Exchange Market (NAFEM) naira ended last week at N1,570.14/$1 exchange rate.
Friday’s exchange rate represented a 1.01% or N15.97 appreciation for the naira compared to the previous day’s exchange rate of N1,586.11/$1.
Proofreading by James, Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
