Interbank FX turnover jumps 70% to $94.43m

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

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The increase represents an additional $38.82m in transactions within the interbank segment, according to data from the Central Bank of Nigeria.

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Trading activity also increased significantly during the session, with the number of interbank deals rising to 86 from 58 on Tuesday.

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This means interbank transactions increased by 28 deals, representing a 48.28 per cent rise within a single trading session.

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The jump in turnover was therefore accompanied by a substantial increase in the number of transactions, pointing to stronger activity among participants in the interbank market.

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On Wednesday, the dollar was traded within a range of N1,321.50/$ to N1,334/$ in the interbank market.

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The weighted average exchange rate for the session stood at N1,329.21/$.

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However, exchange rate closed at N1.328 to the dollar by the end of the day.

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The sharp movement in interbank turnover also highlights the difference between activity recorded specifically in the interbank segment and total transactions reported across the NFEM.

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

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By Wednesday, however, the reported interbank component had risen to $94.43m, an increase of $38.82m in one session.

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The number of interbank deals also climbed from 58 to 86, indicating that the higher turnover was not solely the result of a small number of large transactions.

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The latest figures underscore the volatility in daily FX market activity, with turnover varying considerably from one trading session to another.

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