CBN & BANKS
In August 2024, the turnover of foreign exchange through the Nigerian Autonomous Foreign Exchange Market reached N15.74tn ($9.90bn), as reported by FMDQ. This increase highlights the growing activity within the market.
The Central Bank of Nigeria (CBN) also disclosed that foreign inflows into the country rose to $585m during the same month, indicating a positive trend in external investments.
On Tuesday, the naira’s value in the official market fell to N1,658 against the United States dollar, down from N1,659 the previous day. In contrast, black market sellers quoted the naira at N1,670.
According to the CBN, the notable turnover in the Nigerian Autonomous Foreign Exchange Market represents a substantial month-on-month growth of 33.88%. This translates to an additional N2.51tn compared to July 2024’s turnover of N13.23tn ($7.39bn).
This surge in turnover reflects increased trading activity and greater investor participation in the foreign exchange market.
Commercial banks, the CBN, and international oil companies are the primary sellers of foreign exchange at the Nigerian Autonomous Foreign Exchange Market.
The financial markets monthly report for August, published by the FMDQ and obtained by our correspondent on Tuesday, noted that the increase in turnover was fueled by rising transactions in Treasury bills, Open Market Operations (OMO) Bills, and Federal Government of Nigeria (FGN) Bonds.
Overall, the data indicates a robust engagement in the foreign exchange sector, driven by various financial instruments and market dynamics.
