Nigeria’s foreign exchange market recorded a strong recovery in the week ending July 17th, with total market turnover rising by more than forty-six per cent to two point three eight six billion dollars.
According to the latest report by FMDQ Exchange, the increase was driven by a sharp rise in spot foreign exchange transactions, which more than offset a significant decline in derivatives trading.
The report showed that total turnover increased by seven hundred and fifty-four point six seven million dollars from one point six three one billion dollars recorded in the previous week.
Average daily turnover also rose to four hundred and seventy-seven point one six million dollars, compared with three hundred and twenty-six point two two million dollars a week earlier.
Spot foreign exchange transactions accounted for more than ninety-nine per cent of total market activity, rising to two point three seven one billion dollars, a fifty per cent increase over the previous week.
In contrast, foreign exchange forward contracts fell sharply by more than seventy-one per cent to fourteen point five million dollars, reflecting weaker demand for derivatives used to hedge against exchange rate fluctuations.
Analysts say the surge in spot transactions indicates that businesses and investors were primarily focused on meeting immediate foreign currency needs, while reduced demand for forward contracts suggests growing confidence in the stability of the foreign exchange market.