On Thursday, March 28th, the daily forex turnover surged to an all-time high of $857 million, marking a significant milestone since the implementation of new forex policies by the Central Bank. This remarkable figure stands as the largest turnover recorded since 2021, surpassing the previous record of $760 million set on June 2nd, 2022, according to data from Nairametrics.
Throughout March, the average daily forex turnover has hovered around $220 million, reflecting a notable increase compared to the daily average turnover of $177 million observed earlier this year. This surge in forex turnover underscores the heightened activity in the forex market and signals a robust level of liquidity and vibrancy.
Forex turnover serves as a crucial metric in the financial landscape, offering insights into the total value of all foreign exchange transactions conducted within a specific period. It provides valuable indicators of market dynamics, investor sentiment, and overall economic stability.
Elevated turnover rates suggest a thriving market environment with active participation from various stakeholders engaged in buying and selling currencies. Such buoyancy often correlates with heightened investor confidence and a stable economic outlook.
Despite the impressive surge in forex turnover, the exchange rate on the official market experienced a slight weakening, closing at N1309/$1 compared to the previous day’s rate of N1300/$1. However, this marginal decline does not overshadow the broader trend of the Naira’s strengthening against the US dollar.
The Naira’s sustained momentum in recent weeks has seen it maintaining a favorable position against the dollar, with the current exchange rate still within the range of an 8-week low. This ongoing trend reflects the growing resilience of the Naira and underscores the positive trajectory of Nigeria’s foreign exchange market amidst evolving economic conditions.
