NAFEX declares $1.2bn turnover in one week, as Naira gains

The Nigeria Autonomous Foreign Exchange (NAFEX) window has recorded an improving turnover of $1.172 billion in just four trading days, even as the local currency, Naira, extended gains across foreign exchange markets and against the three major foreign currencies.

The local currency at the autonomous FX window, commenced first trading day of the week on Tuesday, due to the closure of the official forex market on Monday for the Independent holiday declared by the Federal Government of Nigeria, with an opening rate of 359.76 per dollar against 359.89 sold last Tuesday, while closing at 360.40 compared to 360.31 traded the corresponding period in preceding week.

The breakdown of the NAFEX transactions put last Tuesday daily turnover to $340.07 million, which was stronger than $238.98 million declared the same period in the corresponding week.

Therefore, gaining further the following day with an opening rate of 359.40 to the US Dollar compared to 359.76 and a lower closing rate of 360.07 against 360.05 traded the previous Wednesday, but declared an appreciable traded volume of $257.56 against $238.98million a week before.

On Thursday, the autonomous FX window opened for trading at a slight depreciated rate of $359.65 against 359.40 a day earlier but stronger than 359.66 of the previous week.  The local currency then closed at 360.33 compared to Wednesday 360.07 and 360.00 traded in the corresponding period of the week under review.

However, declared an appreciable daily turnover of $367.44 million compared to $257.56 recorded the previous day, better than $340.07 million traded on Tuesday and $299.94 million declared in the corresponding period a week ago.

The Importer and Exporters forex window, which was believed to have boosted investors’ confidence since its creation by the CBN in April, this year on Friday opened began the last trading day with an opening rate of 359.24 against 359.65 and 359.45 recorded a week ago but closed on a downward trend of 360.64 weaker than 360.33 on Thursday and 360.40 sold in previous week.

The special forex window, however, closed the week low to put volume traded at $207.26 million, representing the weakest turnover for the week, while comparing with Tuesday $340.07, Wednesday $257.56 and Thursday $367.44 million, data obtained from FMDQ OTC official website.

Meanwhile, the NAFEX in the previous declared a whopping $1.492 billion turnover, with Monday closing figure of $340.07m, dropped a bit the following day to $299.94m, Wednesday $238.98m, Thursday 238.98m before recording $363.63m on Friday, which represented the highest turnover during the week.

Due to the achievement recorded during short time of the NAFEX establishment, financial experts and forex dealers believed that the newly introduced forexhas reversed the zero level confidence of investors to highest level of confidence in the Nigerian economy.

Our further checks showed that the Importer $ Exporter FX widow, two weeks ago, recorded a turnover of $1.492million, totaling $2.664 billion transactions in two weeks.

The breakdown of the preceding week daily turnover showed that the window on Monday recorded a whopping 363.63m turnover in just one day transaction against 131.84m traded the previous Monday, but declared a weaker figure of $238.98m on Tuesday.

It however, moved up on Wednesday to $250.29m, even though it opened mid week trading at 359.72 stronger than 359.89 to the dollar on Tuesday, and also stronger at 360.05 compared to 360.31 a day before and Monday’s 360.39.

On Thursday, the NAFEX window declared a total daily turnover of $299.94m stronger than $250.29 m sold on Wednesday, and opened for trading at 359.66 per dollar against Wednesday’s 359.72. It then, closed at 360.00 compared to 360.05 traded the previous day.

But activities in the I&E FX window on Friday, strengthened when it closed the official trading at 360.40, which had earlier opened for trading at 359.45 per dollar to close the last trading day before market closed for the independent holiday with a daily total transactions of $340.07million.

Consequently, the Nigerian currency, Naira, has extended its gaining streak against the three major foreign currencies, Dollar, Pound and Euro across the parallel and official forex markets.

The Naira, over the weekend, extended its gains at the unofficial forex market against the Pound sterling at 478 but retained Thursday rates against the US Dollar and Euro, at 363 and 421, respectively.

At the Nigerian interbank foreign exchange market, the local currency sustained the appreciated rate of 305. 65 per dollar traded on Thursday but better than 305.70 traded on Wednesday and 305.75 closed the first trading day of the week under review.