Naira Strengthens 2% as NFEM Records $2.63bn Turnover in Five Sessions
Nume Ekeghe
The naira strengthened by about 2 per cent against the dollar between August 24 and September 4, while foreign exchange transactions on the Nigerian Foreign Exchange Market (NFEM) remained above $2.6 billion in the latest five trading sessions, pointing to continued stability in the official market.
Data from the NFEM showed that the naira closed at N1,322.50/$ on September 4, compared with N1,349.99/$ on August 24, representing an appreciation of N27.49 or 2.04 per cent.
The sustained appreciation came as the market recorded $2.63 billion in total turnover between August 31 and September 4, following $3.19 billion traded in the preceding four sessions from August 24 to 28.
Although the latest period had one additional trading session, activity remained substantial, with average daily turnover standing at $526.30 million.
The stronger exchange rate was also reflected in the market’s weighted average rate, which averaged N1,325.19/$ during the five sessions, compared with N1,341.61/$ in the August 24–28 period.
The market’s performance further showed that the naira maintained its gains through the week. It moved from N1,335.50/$ at the start of August 31 to N1,329/$ on September 1 and N1,324.50/$ on September 2, before settling at N1,322.50/$ on September 3 and September 4.
The improvement in the exchange rate occurred alongside sustained participation, with 1,580 deals recorded during the latest five-session period, higher than the 1,554 deals recorded in the preceding four sessions.
Interbank transactions also remained active, accounting for $605.68 million of turnover during the latest period.
Market activity strengthened as the week progressed, with NFEM turnover rising from $228.52 million on August 31 to $574.42 million on September 1, $658.46 million on September 2 and $674.38 million on September 3, before moderating to $495.70 million on September 4.
The latest performance adds to the recent evidence of improved conditions in the official foreign exchange market, with the naira strengthening even as the market continues to process sizeable dollar transactions.