Forex Turnover Jumps 15.8% to $2.8bn as Naira Weakens
By Aboki Forex —
Total turnover at the Nigerian Foreign Exchange Market interbank window rose by $380 million, or 15.8 percent, to $2.787 billion in the week ended June 26. This happened even as the naira lost value in both official and parallel markets.
Data from the Central Bank of Nigeria shows that turnover climbed from $2.407 billion the previous week. The increase points to stronger activity in the foreign exchange market.
But the higher trading volume did not stop the naira from falling. At the official market, the naira depreciated by 0.76 percent, dropping from N1,370.45 to N1,380.93 per dollar. At the parallel market, it lost 1.08 percent to close at N1,388 per dollar.
Analysts say the naira could recover some ground soon. Nigeria's external reserves rose by 0.37 percent week-on-week to $51.25 billion. That supports the country's external liquidity and boosts market confidence.
Global crude oil prices headed for weekly losses. Geopolitical tensions in the Middle East eased and tanker movements through the Strait of Hormuz improved. Brent crude traded at $72.98 per barrel. West Texas Intermediate stood at $69.55 per barrel. Nigeria's Bonny Light crude fell 10.93 percent week-on-week to $72.70 per barrel.
A report of an Iranian strike on a commercial vessel briefly lifted oil prices by about two percent. The gains did not last as investors remained optimistic about normal shipping activity in the region. But fresh concerns emerged after the United States Central Command said its forces carried out strikes against Iran on Saturday. The Command said the strikes targeted Iranian military surveillance, communications, air defence systems, drone storage facilities and mine-laying equipment.