The foreign exchange market in Nigeria experienced a significant surge in turnover, witnessing a notable increase of 202.97%, soaring to $271.50 million on Tuesday, February 13th, 2024. This surge coincided with a remarkable uptick in the value of the Nigerian naira against the US dollar in the official market.
Just the day prior, the naira had experienced a concerning dip, plummeting to an all-time low of N1,534.39 per dollar. This decline was accompanied by a staggering 64.69% drop in forex turnover, which plunged to $89.61 million, reflecting the volatility and uncertainty prevailing in the market.
However, despite the challenges persisting in the forex market and the various policies implemented by the Central Bank of Nigeria (CBN) to stabilize the situation, the domestic currency managed to stage a recovery. The naira appreciated by 2.36%, closing at N1499.07 to a dollar by the end of the business day.

These fluctuations were observed in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official platform for forex transactions in the country. The intraday trading saw the naira ranging from a high of N1550/$1 to a low of N1,000/$1, with a spread of N550/$1, mirroring the volatility in the market.
The recent surge in forex turnover was partly attributed to the CBN’s circular aimed at addressing suspected cases of excessive foreign currency speculation and hoarding by Nigerian banks. However, in the parallel forex market, where trading occurs unofficially, the naira depreciated marginally, with the exchange rate sliding to N1,517/$1, representing a 1.78% decrease compared to the previous day.
Read more here: https://digiwallet.com.ng/naira-experiences-volatile-week-in-forex-market/