Forex turnover at the official foreign exchange market has increased to $11.43bn within over two months of trading following fresh reforms by the Central Bank of Nigeria, findings by the PUNCH have shown.

An analysis of reports and data of daily forex transactions recorded on the website of FMDQ Securities, a platform that publishes official foreign exchange trading in the country, indicated that the figure increased by 185.75 per cent or $7.43bn between January and March 15th through the Nigerian Autonomous Foreign Exchange by Deposit Money Banks.

Commercial banks, CBN and international oil firms are the major sellers of forex at NAFEM.

The improved liquidity at NAFEM followed a directive by the CBN on February 1, 2024, asking banks to sell their excess dollar stock to improve liquidity in the FX market within 24 hours.

According to officials, the central bank believes some commercial banks hold long-term foreign exchange positions to enable them to profit from the volatile movements of exchange rates.

Although, the naira fell to an all-time low of N1,850/$ at the parallel market, the move aimed at unifying the official and parallel market exchange rates was approved by economists and other stakeholders.

However, they challenged the CBN to clear FX backlogs estimated at over $5bn and fund FX demands at the official market. This, they said, would forestall a situation whereby the parallel market rate would move away from the official rate again.

A further breakdown of the dollar supply showed that the forex market recorded a $4bn turnover in January and increased by $3.3bn within two weeks (February 2 to 16) of implementing the new rules.

In the weeks that followed, the supply stabilised, recording $890.65m between February 19 and 23. This inflow increased to $953.02m in the week ending February 26 to March 1.

Between Monday, March 4 and 8, the market got a gain of $1.07bn as forex turnover but reduced to $848.14m last week (March 11 to 15).

Meanwhile, the naira is expected to stabilise further this week, following moderation in demand pressure, amid dollar supply decline.

On Monday, the naira appreciated marginally against the United States dollar to N1,572.86 at the official market from N1,602.43 recorded last week Friday.

The intraday high closed at N1,640/$ on Monday, lower than N1,615.50 per dollar on Friday on the spot. Also, the intraday low depreciated to N1,400 from N1,524.99 on Friday.

The daily FX market turnover also appreciated by 2.19 per cent to $140.45m on Monday compared to $137.43 million recorded on Friday.

The foreign exchange market ended last week on a positive note as the naira appreciated against the dollar across official and parallel markets.

Last week, the naira gained 0.95 per cent as the dollar was quoted at N1,602.75 on Friday, stronger than N1,617.96 quoted on Monday, the beginning of the trading week, at the official FX market, according to the data compiled from the FMDQ Securities Exchange.

At the parallel market, the local currency was sold between N1,600 and N1,610 depending on location on Monday. This was after it closed the trading week flat by 0.31 per cent to N1,605 on Friday as against N1,610 on Monday, data collated from different street traders and trading platforms showed.

Ofunaofu:
It's quite encouraging compared to where it was a couple of weeks ago. But more needs to be done. 

The truth of the matter is that since Tinubu cannot improve on what he met on the ground, he should just take us back to where it was on the day he was sworn in, because it's now obvious that Buhari is far better than Tinubu in all ramifications.

Anyone who disagrees with this is an enemy of this country. 

SIRAO:


Are an aducated Nigerian or are a butcher that Just to comment ? How can you compare light with darkness aren't you among those coursing buhari for borrowing money often and now we have a president that want us to be like Europeans and yet we 're still talking down on him because he removed subsidy and float naira.
That Peter Obi our son lost an election shouldn't be the reason we should not support our president. let us make the sacrifice for a better Nigeria.

Savedday2:
Does that means, Binance was truly the problem of the Naira?

BigDawsNet:
Can we have our $1 to #750 back?

SIRAO:


Are an aducated Nigerian or are a butcher that Just to comment ? How can you compare light with darkness aren't you among those coursing buhari for borrowing money often and now we have a president that want us to be like Europeans and yet we 're still talking down on him because he removed subsidy and float naira.
That Peter Obi our son lost an election shouldn't be the reason we should not support our president. let us make the sacrifice for a better Nigeria.

Ofunaofu:
It's quite encouraging compared to where it was a couple of weeks ago. But more needs to be done. 

The truth of the matter is that since Tinubu cannot improve on what he met on the ground, he should just take us back to where it was on the day he was sworn in, because it's now obvious that Buhari is far better than Tinubu in all ramifications.

Anyone who disagrees with this is an enemy of this country. 

Paraman:
The problem is numerous. Binance and Peter obi supporters from the east are just part of the problem.

Angelfrost:


Lol... Keep dreaming.

inoki247:
E dey use style go down small small even though we don't know if this are not temporary....

Aremwayne:
You are really senseless, must you play politics with everything? I despise your comments, I wish I can block you on this space.

jmoore:

Peter Obi supporters floated naira?
What a babablu bulabu statement!

DrAkpamudehe:


Mad people everywhere. $1572 is what u call good news?
Agbadorians and hypocrisy.

Bluearrow:

Wetin dey go down??
Something that was around 1500 last week is closing at 1572 u say e dey go down?? You people deserve the kind of leaders u have

Ofunaofu:
It's quite encouraging compared to where it was a couple of weeks ago. But more needs to be done. 

The truth of the matter is that since Tinubu cannot improve on what he met on the ground, he should just take us back to where it was on the day he was sworn in, because it's now obvious that Buhari is far better than Tinubu in all ramifications.

Anyone who disagrees with this is an enemy of this country. 

Paraman:
The problem is numerous. Binance and Peter obi supporters from the east are just part of the problem.

morgstreme:


Statement from a misguided, uninformed statistic..

The removal of subsidy was done late...but better than never..

It's the reason behind the escalation of commodity/FCP prices..

It will take time to come down which it will...

You would have said the PDP to take us back to the days of the military when dollar was 56naira..

Angelfrost:


Lol... Keep dreaming.