The FMDQ Securities Exchange, the leading platform for trading foreign exchange in Nigeria, has reported a turnover of N22.98tn ($44bn) in the first seven months of 2023. This was disclosed in the August edition of the FMDQ Spotlight, a monthly newsletter by the exchange.
The FMDQ became the only recognised forex market in Nigeria after the Central Bank of Nigeria (CBN) harmonised the foreign exchange rates in June. The CBN adopted the NAFEX (Nigerian Autonomous Foreign Exchange Rate Fixing) rate as the official exchange rate and abolished the multiple exchange rate regime.
According to the FMDQ Spotlight, the average daily turnover for the 141 business days from January to July 2023 was N866.21bn ($1.67bn). The average year-to-date for naira was N519.35 per dollar.
The exchange said that the total turnover for the January – July 2023 period amounted to N122.14trn, which was lower than the N139.07trn recorded in the same period in 2022. The exchange attributed the decline to the impact of the COVID-19 pandemic and the low liquidity in the forex market.
The FMDQ Spotlight also revealed that the naira appreciated by 0.39 per cent on the Investor & Exporter (I&E) window on Tuesday to N744.97 per dollar, from N747.87 per dollar at the close of trading on Monday. The daily turnover on Monday was $74.64m.
However, at the parallel market, also known as the black market, the naira depreciated against the dollar on Tuesday. Two Bureau De Change (BDC) operators on Lagos Island told The PUNCH that they sold the dollar at N925 and bought it at N920 per dollar.
The gap between the official and parallel market rates has widened in recent months due to the scarcity of dollars and the high demand for foreign currency by importers and travellers. The CBN has suspended the sales of forex to BDCs since July, accusing them of illegal activities and money laundering.
The FMDQ Spotlight is a monthly publication that provides insights and updates on the activities and developments in the Nigerian financial markets, especially the forex market.
The FMDQ is a securities exchange and self-regulatory organisation that operates under the supervision of the Securities and Exchange Commission (SEC). It offers trading, listing, quotation, clearing, settlement, and depository services for various financial instruments, including bonds, treasury bills, commercial papers, derivatives, and foreign exchange.
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