In November 2024, the FMDQ Exchange recorded a notable increase in foreign exchange market turnover, with a total of N23.95 trillion ($14.39 billion).
The FMDQ Markets Monthly Report, which was acquired on Wednesday, supports this.
A platform for trading a range of financial instruments, such as foreign exchange, fixed income, and derivatives, is offered by Nigeria’s FMDQ financial market infrastructure.
This represented a monthly gain of 42.69 percent over the N16.85 trillion ($10.08 billion) reported in October 2024.
Analysts blame this on changes in the nation’s foreign currency rate and an increase in investment activity.
“In November 2024, the Spot and Derivatives Markets had total turnovers of N58.22 trillion and N0.81 trillion, respectively. Spot FX Market Turnover was $14.39 billion (N23.95 trillion) in November 2024, up 42.69 percent ($4.30 billion) over the turnover recorded in October 2024 ($10.08 billion), according to the report.
The majority of the transaction, N23.95 trillion, came from the spot market, whilst the derivatives market saw a steep drop in turnover, falling 82.41 percent month over month to N0.81 trillion ($0.49 billion).
Following a noteworthy year-over-year gain of 111.80% from N28.79 trillion ($12.91 billion) in November 2023, the FX market turnover increased in November 2024.
Although market participants continue to be concerned about currency volatility and liquidity, analysts credit this growth to increased investor activity and changes in the FX rate.
With the spot exchange rate averaging N1,667.41/$, representing a 2.14 percent depreciation from the previous month’s average of N1,631.71/$, the Nigerian naira continued its downward trend versus the US dollar, which coincided with this spike in trade activity.
Throughout the month, the naira fluctuated between ₦1,639.50/$ and N1,690.37/$, underscoring the currency’s continuous struggles in the foreign exchange market.
