In the last two weeks, the Central Bank of Nigeria and other banking institutions have improved dollar supply to the foreign exchange market by $2.5bn, making the naira strengthen to N1,309 against the United States dollar.
Official figures obtained from the FMDQ Securities Exchange revealed that the naira closed at N1309/$1 on Thursday compared to the N1300/$1 recorded a day earlier. However, it still falls within the eight week low for the Naira as it continues to gain strength against the US dollar.
Trading activities were closed on Friday due to the public holiday.
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Similarly, forex transactions between willing sellers and buyers at the Nigerian Autonomous Foreign Exchange Market increased by 106 per cent to $857m at the close of trading activity on Thursday, marking the highest level since the Central Bank implemented its new forex policies.
This latest development is also the largest turnover since 2021, with the closest figure being $760 million on June 2nd, 2022.
The average daily forex turnover recorded in March has been around $220 million, while this year we have seen $177 million in daily average forex turnover.
Penultimate week, the CBN made a total sales of $1bn.
The summary of the FX trading revealed that the intraday high closed at N1392 on Thursday from N1,460 per dollar on Wednesday, The intraday low appreciated to N1,250 on Thursday as against N1,200 closed on Wednesday.
Liquidity in the forex market has been attributed to an array of policies currently implemented by the CBN.
Key reforms include the unification of exchange rate windows, liberalization of the FX market, clearance of FX backlog obligations for banks and airlines, implementation of a Price Verification System, imposition of limits on banks’ Net Open Position, removal of the daily cap of N2 billion on remunerable Standing Deposit Facility, and overhaul of the Bureau De Change segment.
Forex turnover is a critical metric in the financial world as it represents the total value of all foreign exchange transactions completed within a specific timeframe, providing insights into the liquidity and vibrancy of the forex market.
Total qaaaall of these, the greedy Nigerian traders have refused to allow it reflect positively on goods and services….. When would prices start falling….? Aside Indomie noodles 🍜.. Federal Government needs to create Price Regulatory Agencies ASAP.
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So how much is it as at today