Naira heads to two-month low on lower dollar liquidity
The decline in dollar liquidity has dragged the Nigerian currency to the lowest since March 20 on the official market,
The decline in dollar liquidity has dragged the Nigerian currency to the lowest since March 20 on the official market, data from a Lagos-based securities exchange shows.
The total turnover in the FX spot and derivatives markets fell by 30.78 percent to $795.58 million this week from $1,149.28 million last week, according to FMDQ.
It said the FX spot turnover dropped by 32.81 percent to $768.83million, offsetting the increase in FX derivatives turnover.
“The week-on-week increase in FX derivatives turnover was solely driven by the 435 percent ($21.75 million) increase in FX forwards turnover, while there was continued lack of activity in both the Exchange-Traded FX Futures and Cleared Naira-Settled Non-Deliverable Forwards,” it said.
The average Nigerian Autonomous Foreign Exchange Fixing rate was N1,420.79/$, compared to N1,381.74/$ recorded last week.
