The Nigerian Foreign Exchange Market (NAFEM) saw a surge in foreign exchange trading, going up by 61.9 percent to $43.09 billion in the first eleven months of 2024 (11M’24) compared to $26.6 billion in the same time in 2023.
Data from the Financial Market Dealers Quotations (FMDQ) shows that trading was $12.64 billion in the first three months of 2024 (Q1’24) and then dropped by 19 percent to $10.24 billion in the next three months (Q2’24). This decrease continued in the third quarter of 2024 (Q3’24), with trading falling by 0.87 percent to $10.15 billion.
In October, the amount of revenue increased by 63% compared to the previous month, going from $3.31 billion to $5.4 billion. This amount grew again by 13.5% in November, reaching $6.13 billion.
In November, the Nigerian currency, the naira, had different results in different parts of the foreign exchange market. In the NAFEM, the naira became stronger, increasing by N2.8 or 0.16%, closing at N1,672.69 per dollar in November, up from N1,675.49 per dollar in October. However, in the parallel market, the naira became weaker, dropping by N10 or 0.5%, ending at N1,745 per dollar in November, down from N1,730 per dollar in October.
The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) is worried about the ongoing challenges affecting the exchange rate.
