The foreign exchange (FX) turnover in Nigeria’s official market experienced a sharp decline of 39.95% on Monday, falling from $269.27 million to $161.69 million. This cautious approach among traders and financial institutions reflects a notable decrease in trading volumes, indicating a cautious stance as they evaluate market conditions before making significant moves.
This downturn follows the announcement on June 6, 2024, by Afrexim Bank regarding the disbursement of $925 million, part of a $3.3 billion crude oil-backed loan agreement with the NNPC. Despite efforts to stabilize the market, the subsequent fluctuations underscore ongoing challenges in Nigeria’s foreign exchange market.
Key insights from trading data reveal fluctuations in the naira exchange rate, ranging from a high of N1,505/$1 to a low of N1,410/$1 on Monday. While not considered extreme in a volatile market, these fluctuations reflect the market’s response to recent financial interventions and shifting supply and demand dynamics.
Credit: Nairametrics (Text Excluding Headline)
