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The foreign exchange turnover in July amounted to N11.48tn ($7.39bn) at the official trading window for the Nigerian currency, surpassing the N10.01tn traded in the previous month.
The FMDQ, which houses the official foreign exchange trading platform, disclosed this in its financial markets monthly report for July.
In dollar terms, FX market turnover in July saw a 10.02 per cent ($0.67bn) month-on-month increase from $6.72bn in the prior month.
Additionally, the naira depreciated against the dollar, with the spot exchange rate rising by 4.88 per cent (N72.58) to close at an average of $/1,560.32 in July from $/1,487.74 in June.
The exchange rate fluctuated significantly in July, trading between $/1,500.32 and $/1,621.12, compared to the June 2024 range of $/1,473.66 to $/1,510.10.
By the end of the week, the Naira had appreciated by 62 basis points against the dollar, closing at N1,570.14/$ on the NAFEM. The trading volume was $120.81m, with an intraday high and low of N1606/$ and N1496/$ respectively.
The FX turnover reflects increased trading activities in the forex market during the period under review.
The Central Bank of Nigeria reported that the average exchange rate of the naira against the dollar at the Nigerian Autonomous Foreign Exchange Market fell by 35.53% to $/1,304.72 in the first quarter of 2024, compared to $/841.15 in the last quarter of 2023.
Businesses expect the naira to continue depreciating in the next three months but begin appreciating after six months.
The borrowing rate is expected to rise, and the current inflation rate of 34.19% is considered too high, especially among large firms.
The CBN has announced a surge in remittance inflows, reaching $553m in July 2024, a 130.00% year-on-year increase compared to July 2023, driven by recent policy initiatives aimed at boosting liquidity in Nigeria's foreign exchange market.
