Naira extends slide as FX market loses 13% of liquidity
The naira extended its decline against the dollar on the official market as liquidity was 13.37 percent lower last week,
The naira extended its decline against the dollar on the official market as liquidity was 13.37 percent lower last week, data from FMDQ Group show.
The total turnover in the FX spot and derivatives markets fell to $686.96 million from $792.98 million in the previous week.
“For the week-ended November 24, 2023, the average Nigerian Autonomous Foreign Exchange Fixing rate was $/₦856.06, compared to $/₦850.43 recorded in the week-ended November 17, 2023, representing a depreciation of the Naira against the United States Dollar by 0.66 percen ($/₦5.63),” FMDQ said.
The week-on-week decrease in the total turnover was jointly driven by the 12.93 percent ($101.84 million) and 79.92 percent ($4.18 million) decreases in FX spot and FX derivatives turnover, respectively.
The decrease in FX derivatives turnover was solely driven by the decline in FX forwards turnover, while there were no trades executed in both the Exchange-Traded FX Futures and Cleared Naira-Settled Non-Deliverable Forwards markets.
The total value of transactions in the FX spot market dropped to $685.91 million from $787.75 million in the week ended Nov. 17.
