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Naira weakens as interbank FX turnover drops 52%
['Boluwatife Oshadiya', 'Boluwatife Oshadiya Is A Nigerian Journalist', 'Communications Professional At Bizwatch Nigeria', 'Where He Contributes To Editorial Leadership', 'Business Reporting. His Coverage Focuses On Capital Markets', 'Banking', 'Finance', 'The Broader Business', 'Economic Landscape', 'Delivering Data-Driven Analysis']
BizWatchNigeria.Ng
Data released by the Central Bank of Nigeria (CBN) showed that activity at the Nigerian Foreign Exchange Market (NFEM) slowed significantly, with interbank foreign exchange turnover falling by approximately 52% to $75.36 million from $156.23 million recorded a day earlier.
What’s NextMarket participants will monitor whether the Central Bank of Nigeria resumes stronger foreign exchange interventions to improve market liquidity.
Investors will watch movements in Nigeria’s external reserves for further signals on the CBN’s capacity to support the naira.
The next trading sessions will indicate whether Wednesday’s sharp decline in turnover was temporary or the beginning of a broader slowdown in interbank market activity.
While Nigeria’s rising external reserves provide a measure of confidence, sustained stability in the foreign exchange market will ultimately depend on stronger dollar inflows and improved market liquidity rather than intermittent intervention alone.