Quarterly transaction details released by FMDQ indicated that turnover was $12.64 billion in the first quarter of 2024 (Q1’24), but saw a quarter-on-quarter (QoQ) decline of 19 percent to $10.24 billion in the second quarter (Q2’24).
This downward trend persisted into Q3’24, with turnover decreasing by 0.87 percent to $10.15 billion. In October, however, the volume rebounded, rising month-on-month (MoM) by 63 percent to $5.4 billion from $3.31 billion in September, and further increasing by 13.5 percent MoM to $6.13 billion in November.
In November, the naira exhibited mixed results across different segments of the foreign exchange market. Within NAFEM, the local currency appreciated by N2.8, or 0.16 percent, closing at N1,672.69 per dollar at the end of November, up from N1,675.49 per dollar in October.
Conversely, in the parallel market, the naira depreciated by N10, or 0.5 percent, with dealers trading dollars at N1,745 at the end of November, compared to N1,730 per dollar in October. As a result, the gap between the parallel market rate and the NAFEM rate widened to N72.31 per dollar in November, up from N54.61 in October.
In Communiqué No. 155, the Central Bank of Nigeria's Monetary Policy Committee (MPC) members voiced apprehension about sustained exchange rate volatility, recommending that the CBN investigate supplementary strategies to improve foreign exchange market liquidity.
The MPC observed persistent exchange rate pressure stemming from elevated market demand, prompting a recommendation to the Bank to explore options for enhancing market liquidity.