FX MARKET TURNOVER RISES TO $4.4BN AS LARGE TRANSACTIONS DRIVE ACTIVITY

Nigeria’s foreign exchange market recorded a surge in trading activity as turnover climbed to $4.4 billion, driven by increased participation from large transactions and heightened market speculation.

The rise in turnover reflects stronger activity among market participants, including banks, businesses, and investors seeking to manage foreign exchange needs amid ongoing currency market adjustments. Analysts said the increase in large-value deals contributed significantly to the higher trading volumes.

Market observers noted that improved liquidity in the FX market could support price discovery and enhance confidence among investors and businesses. However, they warned that increased speculative activities may also create short-term volatility if not matched by sustained foreign currency inflows.

Experts said continued efforts to improve transparency, attract foreign investment, and strengthen dollar supply will be critical to maintaining stability in the market.

They added that a more efficient foreign exchange system would help businesses plan better, reduce uncertainty, and support economic growth as Nigeria continues efforts to stabilise its currency market.