Interbank FX turnover jumps 69.82% to $94.43m
By Aboki Forex —
Nigeria's interbank foreign exchange turnover rose by 69.82 per cent to $94.43m on Wednesday, from $55.60m in the previous trading session. The increase added $38.82m in transactions within the interbank segment, according to Central Bank of Nigeria data.
Trading activity also climbed. The number of interbank deals rose to 86 from 58 on Tuesday, an increase of 28 deals or 48.28 per cent in a single session. The higher turnover came with more transactions, pointing to stronger activity among interbank market participants rather than just a few large trades.
Rates and range
The dollar traded between N1,321.50/$ and N1,334/$ in the interbank market on Wednesday. The weighted average exchange rate for the session was N1,329.21/$. The exchange rate closed at N1.328 to the dollar by the end of the day.
NFEM comparison
The interbank segment is separate from total transactions reported across the Nigerian Foreign Exchange Market, or NFEM. On Tuesday, interbank transactions accounted for only a fraction of the $933.78m total NFEM turnover. By Wednesday, the reported interbank component had risen to $94.43m, up by $38.82m in one session.
The number of interbank deals also rose from 58 to 86, showing that the higher turnover was not solely the result of a small number of large transactions.
What it means
The latest figures underscore the volatility in daily FX market activity, with turnover varying considerably from one trading session to another. For businesses and traders, the rise in interbank deals and turnover points to more active dollar trading, but the wide rate range and daily swings mean pricing remains uneven. The naira closed at N1.328 to the dollar in the interbank market, according to the CBN data.