Following consistent demand fuelled by increased business activity, investors and exporters traded N8.29trillion worth of foreign exchange at the FMDQ market in the first two months of 2022, the FMDQ Exchange has disclosed.
This is an increase of 9.7 per cent when compared to N7.55 trillion total foreign exchange turnover traded in the first two months of 2021.
FMDQ in its Fixed Income and Currencies (FIC) monthly report disclosed that FX trade in January 2022 rose by 29 per cent year-on-Year (YoY) to N4.22trillion or $10.13billion from N3.26trillion or $8.29billion reported in January 2021.
In February, total FX turnover trade dropped by 5.36 per cent YoY to N4.06trillion or $9.75billion in February 2022 from N4.29trillion or $10.60billion reported in February 2021.
Analysts believe increasing business activities has played critical role in the FX demand stressing that the Central Bank of Nigeria (CBN) sustained interventions has reduced pressure.
Commenting, analyst at PAC Holdings, Mr. Wole Adeyeye attributed the growth recorded in the total foreign exchange turnover in the first two months to increasing economy activities.
He noted that the slow growth in business activities in first two months of 2021 affected foreign exchange turnover traded, maintain that global economy over uncertainty due to restrictions.
He said: “The restrictions had affected investors and exporters demand for FX in the first two months of 2021. There was also volatility in the foreign exchange market. However, with the vaccines discover that eventually led to ease on movement in 2022, investors and exporters surge for FX from the FMDQ market increased and it reflected in the amounts.”
