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On December 20, 2023, the forex turnover in Nigeria saw a decline of 21.45%, totaling $181.30 million, accompanied by a depreciation of the Nigerian naira against the dollar. The official market rate closed at N854.61/$1, representing a 1.5% depreciation compared to the previous day’s rate of N844.85/$1.
Key Points:
- Forex Turnover: The forex turnover dropped by 21.45% to $181.30 million.
- Naira Depreciation: The naira depreciated by 1.5% to close at N854.61/$1.
- Intraday High/Low: The intraday high recorded was N1240/$1, while the intraday low was N700/$1.
- Parallel Market: In the parallel forex market, the naira appreciated by 0.24%, quoted at N1238/$1.
- Economist Perspectives: Olatunde Amolegbe, MD of Arthur Steven Asset Management Limited, emphasized the importance of market and participant confidence for exchange rate stability. He mentioned that the impact of efforts to clear FX commitment backs might manifest in the medium term. Bismarck Rewane, MD/CEO of Financial Derivatives Company Limited, expected the naira to remain volatile due to lingering forex supply concerns.
The report provides insights into the dynamics of the foreign exchange market in Nigeria, tracking changes in forex turnover, official market rates, and parallel market rates. Economist perspectives highlight the significance of confidence and structural changes in stabilizing the exchange rate.
