Naira appreciation: FX transactions surge with $1bn single-day trade

Turnover at Nigeria’s foreign exchange market surged to the highest in a single day since 2017 on Tuesday amid Naira’s continued appreciation against the US dollar.

Data from FMDQ showed that turnover FX transactions increased to $1.085 billion on Tuesday.

This represents a 27 per cent increase from $857.78 million traded last Thursday.

The development comes as the Naira appreciated against the dollar at the official and parallel foreign exchange markets.

Tajudeen Ibrahim, director of research and strategy at Lagos-based investment bank Chapel Hill Denham, attributed the sustained gains in Naira at the forex market to Central Bank of Nigeria’s reforms.

“Liquidity is returning to the market, and that’s solely down to the CBN’s reforms.

“The last time we recorded the average daily FX trades in the first quarter of this year was before COVID in 2019.

“The CBN must now stay the course of the reforms,” he added.