Forex: Turnover in NAFEM rises 74% to $22.88 bn in H1’24 – Vanguard

By Elizabeth Adegbesan

The volume of dollars traded (turnover) in the Nigerian Foreign Exchange Market, NAFEM, rose year-on-year (YoY) by 74 percent to $22.88 billion in the first half of  2024 (H1’24) from $13.11 billion in H1’23.

Vanguard analysis of quarterly transactions in the market as published by FMDQ showed that turnover stood at   $12.64 billion in the first quarter of 2024 (Q1’24) and fell quarter-on-quarter (QoQ) by 19 percent to $10.24 billion in the second quarter of 2024 (Q2’24).

Meanwhile, weekly analysis of June transactions in NAFEM  showed that turnover stood at $1.05 billion in the first week of June but fell by 21.5 percent, week-on-week, WoW to $823.75 million in the second week.

In the third week, turnover declined by 36.8 percent, WoW to $520.43 million.

The downward trend reversed in the fourth week when turnover rose by 80.6 percent to $940.17 million.

 

Naira falls across forex market segments

Meanwhile, the naira depreciated in the official and parallel market segments during the review period.

The naira depreciated by N598.19 or 66 percent to N1,505.3   per dollar in NAFEM on June 30th, 2024   from N907.11 per dollar traded as of December 29th, 2023.

Similarly, the naira depreciated by N300 or 24.7 percent in the parallel market.

Vanguard gathering from black market traders showed that the exchange rate for the market rose to N1,515 per dollar at the end of June 2024   from N1215 per dollar on December 29th, 2023.

Consequently, the margin between the parallel market rate and the NAFEM rate narrowed to N9.7 per dollar on June 30th, 2024 from N307.89 per dollar on December 29th, 2023.

Meanwhile, the country’s foreign reserve grew by 3.8 percent to $34.14 million as of June 27th, 2024 from $32.9 million as of December 29th, 2023.