Naira pares gains as weekly forex liquidity loses 33%
The Nigerian currency lost some of its recent gains against the dollar this week as liquidity in the official foreign
The Nigerian currency lost some of its recent gains against the dollar this week as liquidity in the official foreign exchange market dropped by a third, data from Lagos-based securities exchange FMDQ shows.
The average Nigerian Autonomous Foreign Exchange Fixing rate was N1,486.37 per dollar compared to N1,412.03/$ last week.
The total turnover in the FX spot and derivatives markets fell to $1.22 billion from $1.82 billion last week.
The FX spot turnover declined to $1.22 billion from $1.8 billion.
FMDQ said the decrease in FX derivatives turnover was solely driven by the 88.02% ($14.70 million) decrease in FX forwards turnover, while there was continued lack of activity in both the Exchange-Traded FX Futures and Cleared Naira-Settled Non-Deliverable Forwards markets.
