In October 2024, the naira lost value in relation to the dollar due to ongoing instability in the foreign exchange market, according to the FMDQ Exchange, which is home to the Nigerian Autonomous Foreign Exchange Market.
The most recent FMDQ Exchange Financial Markets Monthly Report for October 2024, which was made public on Thursday, included this information.
The report states that the spot FX market turnover in October 2024 was $10.08 billion (N16.36 trillion), which was a 6.58 per cent ($0.62 billion) month-over-month gain over the $9.46 billion turnover in September 2024.
“In the FX market, the Naira depreciated against the US Dollar, with the spot exchange rate ($/N) increasing by 2.38 per cent ($/N38.82) to close at an average of $/N1,631.71 in October 2024 from $/N1,592.89 recorded in September 2024.
“Further, exchange rate volatility continued into October 2024 as the Naira traded within an exchange rate range of $/N1,552.92 – $/N1,675.49 compared to $/N1,539.65 – $/N1,6667.42 recorded in September 2024,” the report said.
Despite the Central Bank of Nigeria’s efforts to fortify the naira, FMDQ statistics showed that it ended October trading at N1,675.49/$, much over N1600.
The CBN fiat exchanged above N1600/$ in November.
It ended Wednesday’s trading session at N1687.52/$, down 0.51 from the previous day’s closing price of 1678.93. At $173.29 million, the daily turnover was greater than $128.59 million.
According to the report, secondary market activity was dominated by FX and money market transactions, which together accounted for 75.74 per cent of the total secondary market revenue in October 2024.
