Forex turnover in the official market surged by 95%, reaching $12.68 billion in the first quarter of
In the first quarter of 2024 (Q1'24), the volume of dollar traded (turnover) in the official Nigerian Foreign Exchange Market (NAFEM) experienced a year-on-year (YoY) increase of 95%, soaring to $12.68 billion from $6.5 billion in Q1'23.
The notable rise underscores the effects of recent measures implemented by the Central Bank of Nigeria (CBN) aimed at liberalizing the forex market and enhancing the influx of dollars into the country.
The market saw a turnover of $2.14 billion in January, surging by 133.6 percent to $5 billion in February, and further increasing by 10.8 percent to $5.54 billion in March.
Analysis of transactions in March revealed that turnover stood at $296 million on the first day of the month and increased to $1.15 billion in the second week. However, turnover dropped by 26 percent to $848.36 million in the third week before bouncing back by 48.5 percent to $1.26 billion in the fourth week. Notably, turnover peaked at $1.98 billion in the final week, marking the highest weekly turnover for March.
Additionally, reflecting the impact of the CBN's measures, the nation's external reserves increased by 2.9 percent quarter-on-quarter (QoQ) to $33.885 billion in Q1'24 from $32.912 billion at the end of Q4'24. Nevertheless, the naira displayed mixed performances in both the parallel and official markets during Q1'24.
the Naira depreciated by 44.3 percent in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to N1,309.39 per dollar at the end of Q1’24. This marks a decrease from N907.11 per dollar at the end of Q4’23.However, in the parallel market, the Naira appreciated by 3.1 percent to N1,290 per dollar in Q1’24, up from N1,240 per dollar in Q4’23.
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