Naira Gains Despite 32% Drop in FX Market Turnover

• Nigeria’s foreign exchange market turnover declined by 32.28% in December 2024, falling to $9.74bn from $14.39bn in November.

• The decline was attributed to ongoing foreign exchange market reforms and broader liquidity challenges.

• Despite the drop in turnover, the naira appreciated against the US dollar, with the average exchange rate strengthening to N1,564.97/$ from N1,667.41/$ in November.

Nigeria’s foreign exchange market turnover declined significantly in December 2024, falling by 32.28% to $9.74bn from $14.39bn in November.

The decline, highlighted in the FMDQ Exchange’s December Financial Markets Monthly Report, reflects the impact of ongoing foreign exchange market reforms and broader liquidity challenges.

According to the report, the decline in FX market turnover contributed to an overall contraction in Nigeria’s financial markets.

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Total spot market turnover across all products fell by 29.58% to N41tn in December, driven by declines in FX, fixed income, and money market transactions.

The report noted, “Spot FX market turnover was ($14.39bn).”

Despite the drop in turnover, the naira appreciated against the US dollar, with the average exchange rate strengthening to N1,564.97/$ from N1,667.41/$ in November.

Naira Appreciates Against Dollar on Black Market

The naira has appreciated against the dollar at the parallel foreign exchange market, closing Monday’s trading with gains.

A Bureau de Change operator in Wuse Zone 4, Abuja, Abubakar Alhasan, told DAILY POST that the naira traded at N1,600 per dollar.

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