NIGERIA'S OFFICIAL MARKET RECORDS A DAILY FX TURNOVER OF $100.06 MILLION.

The rate is 16.88% higher than it was on Thursday, when it was ₦956.33, according to statistics from the FMDQ Securities Exchange.

In the Nigerian Foreign Exchange Market (NAFEM), Nigeria achieved a daily FX turnover of $100.06 million, of market's volatility.

On Friday, November 24, 2023, the daily FX turnover was $75.82 million; on Monday, November 27, 2023, it increased by 32% to $100.06 million.

The country's official FX market, NAFEM, provided the data, which showed that Monday's increase in daily forex turnover was due to more FX coming into the economy.

Additionally, the local currency reached a high of ₦1,130 during intraday trade and a low of ₦700, according to statistics from the FMDQ Securities Exchange.

Meanwhile, Monday's increase in daily turnover is attributed by rising investor confidence in the foreign exchange market.

It is purported that this is due to a commitment made over the weekend by CBN governor Olayemi Cardoso that the bank will continue to pay outstanding forward foreign exchange obligations until they are completely settled.

During a speech at the Chartered Institute of Bankers (CIBN) dinner in Lagos, the governor of the central bank declared that clearing the forwards will provide stability, put an end to speculation, and increase confidence in the FX market.

According to Cardoso, the intervention has already increased liquidity and, to a notable increase in the currency rate.

Remember that last week saw the value of the naira on both the official and black markets.

The naira recovered on Friday, hitting ₦794.89/$1, after falling in the official market for days.

The FMDQ Securities Exchange, is 16.88% higher than it was on Thursday, when it was ₦956.33.

Because of this, the naira strengthened more versus the dollar on the black market, hitting ₦1,155 on Friday instead of ₦1,160.

This is a gain of 0.43% (₦5) over the ₦1,160 traded on Thursday at the parallel market.

Regarding the naira's appreciation, the governor of the CBN said, “As the monetary authority, we are taking measures and deliberate steps to send the right signals to the market and achieve our mandate.” To preserve stability, put an end to speculation, and regain confidence in the foreign exchange market, we have begun paying forward foreign exchange obligations that are past due and will continue to do so until all obligations are satisfied.

This move has resulted in the currency rate appreciating dramatically at different times, which has already had a positive impact on liquidity. The payments made to 31 banks in tranches to settle the backlog of forward FX commitments have been well received by the market, and as a result, the FX market's liquidity has already improved in recent weeks.

We have checked the payments to ensure that we are honoring only valid transactions. In a well-functioning liquidity exceeding $1.0 billion.

The governor of the CBN thought that comparable amounts of foreign exchange reserves might be restored in economies with similar characteristics if discipline and dedication were used.