Forex, month over month (MoM), the amount of dollars traded (turnover) on the Nigerian Foreign Exchange Market (NAFEM) decreased by 37.4%, from $5.54 billion in March 2024 to $3.47 billion in April 2024.
Due to the three days of Eid-al-Fitr festivities celebrated during the week, turnover decreased by 49.5% to $420.33 million in the second week of April, according to an analysis of weekly transactions in the market published by FMDQ.
However, in the third week, turnover rose by 133.5 percent to $981.77 million, and in the fourth week, it decreased by 12.3 percent to $860.54 million. In the final two days of trading in April 2024, turnover was $373.19 million (forex).
Throughout the review period, the naira lost value in both the official and parallel market categories. The value of the naira decreased from N1309.39 per dollar exchanged on March 28, 2024, to N1390.96 per dollar in NAFEM on April 30.
In the parallel market, the value of the naira dropped by N20. Based on information gathered from black market dealers, the market’s exchange rate increased from N1,290 per dollar on March 28, 2024 to N1,310 per dollar on April 30. As a result, on April 30, 2024, the difference between the parallel market rate and the NAFEM rate increased to N80.96 per dollar from N19.36 on March 28, 2024 (forex).
According to Cowry Asset Management plc’s experts’ Economic and Financial Outlook for the first half of the year (H1’24), the Naira would moderate in the second quarter of 2024 (Q2’24). Since March, there has been a notable increase in the value of the Naira relative to the US dollar. To close on April 15, 2024, at the close of business, at N1,080 per dollar and N1,136.04 per dollar in the Parallel and NAFEM markets, respectively.
Forex
“The government’s intention to issue bonds denominated in foreign currencies in June will increase foreign exchange liquidity in Q2′ 24 even further. However, considering the enormous expense of this adventure, it is unlikely that CBN will be able to continue the current Naira defence. As a result, we anticipate that in Q2 2024, the present Naira appreciation will moderate.
Source: vanguardngr.com
