On Monday, June 3, 2024, the official foreign currency (FX) market in Nigeria had a sharp decline in turnover, plunging by 42.92%.
Nigeria’s foreign exchange turnover transaction dropped by
42.92 percent amid the continued fluctuations of the Naira against the dollar.
FMDQ data on Monday showed that FX turnover crashed to
$121.87 million from $213.52 million last Friday.
The reduction underscores the decline in activity and
liquidity in the foreign exchange market, indicating uncertainty and
apprehension.
However, despite the drop in FX transactions, Naira
appreciated by N1476.12 against the dollar compared to N1485.99 traded on
Friday.
FMDQ securities exchange data showed that in May alone, the
Central Bank of Nigeria sold $575m to banks, the highest in a single month to
defeat the Naira against other currencies.
Meanwhile, Nigeria’s foreign exchange reserves dropped by
$1.8bn in 10 weeks.