Interbank FX turnover jumps by $38.8m

Trading activity in Nigeria’s interbank foreign exchange market rose sharply on Wednesday, with turnover climbing by 69.82 per cent to $94.43m from $55.60m recorded in the previous session.

Data from the Central Bank of Nigeria showed that the increase represented an additional $38.82m in transactions during the trading session.

The rise in turnover was accompanied by a significant increase in the number of deals executed, which climbed from 58 on Tuesday to 86 on Wednesday.

The 28-deal increase represents a 48.28 per cent rise in the volume of transactions conducted within the interbank segment.

The figures indicate that Wednesday’s higher turnover was supported by broader trading activity rather than being driven solely by a few large transactions.

The dollar traded between N1,321.50 and N1,334 in the interbank market during the session, while the weighted average exchange rate stood at N1,329.21 to the dollar.

The naira closed the session at N1,328/$.

Wednesday’s figures also highlight the difference between turnover in the interbank segment and the broader Nigerian Foreign Exchange Market.

On Tuesday, interbank transactions accounted for only a portion of the $933.78m total turnover reported across the NFEM.

However, interbank turnover rose to $94.43m on Wednesday, reflecting a sharp increase in activity within that segment in just one trading session.

The number of deals also rose from 58 to 86, reinforcing the indication of increased participation among market players.

The latest data point to continued fluctuations in daily foreign exchange market activity, with transaction volumes and turnover varying significantly from one session to another.