By Ebestnations
The FMDQ Exchange has reported a notable increase in turnover within its foreign exchange market for November 2024, reaching N23.95 trillion ($14.39 billion).
This information was sourced from the FMDQ Markets Monthly Report released on Wednesday.
FMDQ serves as a financial market infrastructure in Nigeria, facilitating the trading of various financial instruments, including foreign exchange, fixed income, and derivatives.
The turnover reflects a month-on-month increase of 42.69 percent from the N16.85 trillion ($10.08 billion) recorded in October 2024.
Analysts attribute this growth to heightened investor activity and adjustments in the nation’s foreign exchange rate.
According to the report, “Total turnover for the Spot and Derivatives Market was N58.22 trillion and N0.81 trillion, respectively, in November 2024. Spot FX Market Turnover was $14.39 billion (N23.95 trillion) in November 2024, representing a month-on-month increase of 42.69 percent ($4.30 billion) from the turnover recorded in October 2024 ($10.08 billion).”
The increase in FX market turnover for November 2024 also reflects a significant year-on-year growth of 111.80 percent, up from N28.79 trillion ($12.91 billion) in November 2023.
Analysts point to increased investor engagement and adjustments in the FX rate as key factors driving this growth, although challenges related to currency volatility and liquidity continue to pose concerns for market participants.
This rise in trading volume coincided with a continued decline of the Nigerian naira against the US dollar, with the spot exchange rate averaging N1,667.41/$, marking a 2.14 percent depreciation from the previous month’s rate of N1,631.71/$.
Throughout the month, the naira traded within a range of ₦1,639.50/$ to N1,690.37/$, underscoring the ongoing pressures faced by the currency in the foreign exchange market.
eonojakaromah