Interbank FX turnover jumps 70% to $94.43m

Nigeria’s interbank foreign exchange turnover rose sharply by 69.82 per cent to $94.43m on Wednesday, from $55.60m recorded in the previous trading session.

The increase represents an additional $38.82m in transactions within the interbank segment, according to data from the Central Bank of Nigeria.

Trading activity also increased significantly during the session, with the number of interbank deals rising to 86 from 58 on Tuesday.

This means interbank transactions increased by 28 deals, representing a 48.28 per cent rise within a single trading session.

The jump in turnover was therefore accompanied by a substantial increase in the number of transactions, pointing to stronger activity among participants in the interbank market.

On Wednesday, the dollar was traded within a range of N1,321.50/$ to N1,334/$ in the interbank market.

The weighted average exchange rate for the session stood at N1,329.21/$.

However, exchange rate closed at N1.328 to the dollar by the end of the day.

The sharp movement in interbank turnover also highlights the difference between activity recorded specifically in the interbank segment and total transactions reported across the NFEM.

On Tuesday, interbank transactions accounted for only a fraction of the $933.78m total NFEM turnover.

By Wednesday, however, the reported interbank component had risen to $94.43m, an increase of $38.82m in one session.

The number of interbank deals also climbed from 58 to 86, indicating that the higher turnover was not solely the result of a small number of large transactions.

The latest figures underscore the volatility in daily FX market activity, with turnover varying considerably from one trading session to another.