The official foreign exchange market, the Nigerian Autonomous Foreign Exchange Market, witnessed a 14.96 per cent drop in turnover to N3.66tn ($4.66bn) in October from N4.15tn in September.

According to the latest Financial Markets Monthly Report issued by FMDQ, which houses the NAFEM, the US dollar appreciated against the naira in October with the spot exchange rate increasing by 5.34 per cent or N40.41 to close at an average of N797.43 from N757.02 recorded in September. It was also the lowest that naira had depreciated since the harmonisation of the segments of the foreign exchange market by the Central Bank of Nigeria in June.

The report stated that exchange rate volatility increased in October as “The naira traded within an exchange rate range of N741.85– N993.82 compared to N722.39– N780 recorded in September.”

Meanwhile, the total spot market turnover for all products traded in the secondary market was N20.48tn in October 2023, representing a month-on-month decrease of 4.02 per cent(N0.86tn) from September figures. The MoM decrease in total spot market turnover was jointly driven by the decline reported in Money Market and Foreign Exchange which drowned the 29.04 per cent (N2.68tn) increase recorded in fixed income turnover.

Analysis of the data showed that the decline in money market turnover was jointly driven by a decrease in Repos/buy-backs and unsecured placement/takings transactions respectively. Conversely, the appreciation in FI turnover was driven by a month-on-month

increase across all FI products, excluding treasury bills and Federal Government Bonds which decreased in the review period.

Secondary market turnover on FMDQ Exchange in October was N21.70tn, representing a month-on-month decrease of 6.75 per cent to N1.57tn and a year-on-year increase of 60.27 per cent from September 2023 and October 2022 figures, respectively.