On Wednesday, the US Dollar supply turnover at the official foreign exchange market in Nigeria experienced a significant surge of 51%, reaching $240.72 million. This surge coincided with marginal gains recorded by the Naira against the Dollar.
Data from FMDQ revealed that FX turnover escalated to $240.72 million on Wednesday from $117.32 million on Tuesday. This notable increase of $123.4 million in FX turnover reflects the heightened activity in the foreign exchange market by the close of trade on Wednesday.
The surge in US Dollar supply led to a notable appreciation of the Naira, which strengthened to N1,542.58 per US dollar on Wednesday from N1,551.24 on Tuesday. This uptick marks the second instance of the nation’s currency gaining ground against the US dollar at the official foreign exchange market since last Thursday.
Conversely, the parallel market saw the Naira’s value decline to N1,860 per US dollar on Wednesday from N1,740.00 on Tuesday. However, at Binance, a popular peer-to-peer (P2P) market, the Naira showed resilience, appreciating to N1,608 per US dollar on Wednesday from N1,936 on Tuesday. This discrepancy in exchange rates across different markets reflects the dynamics of supply and demand and highlights the complexities of currency valuation in Nigeria.
These fluctuations occurred amidst reports of access restrictions in Nigeria, contributing to the varying exchange rates observed across different platforms. The recent raids conducted by the Economic and Financial Crimes Commission (EFCC) on illegal Bureau De Change operators in Abuja, Lagos, Kano, and Oyo states may have also influenced market sentiments and contributed to the observed fluctuations in the Naira’s value.
Furthermore, the Central Bank of Nigeria (CBN) has been proactive in implementing policies aimed at stabilizing the foreign exchange market and curbing the volatility of the Naira. These efforts reflect the CBN’s commitment to maintaining price stability and fostering a conducive environment for economic growth and development.
