The Nigerian Foreign Exchange Market, or NAFEM, saw a 74 percent increase in month-over-month (MoM) turnover, or the amount of dollars moved, from $3.31 billion in September to $5.4 billion in October.

According to the foreign exchange market transaction details in the records of FMDQ Plc, which hosts the market platform, turnover was $12.64 billion in the first quarter of 2024 (Q1’24) and dropped 19% on a quarter-over-quarter (QoQ) basis to $10.24 billion in the second quarter (Q2’24).

Turnover increased by 6.4 percent to $10.9 billion in Q3 of 2024.

All foreign exchange markets use the naira.

In October, the naira lost value in both the official and black markets.

From N1,541.94 per dollar traded in September to N1,675.49 per dollar in October, the value of the naira fell by N133.45, or 8.6 percent, in NAFEM.

In the parallel market, the value of the naira also dropped by N25, or 98 percent.

According to black market dealers, the market’s exchange rate increased from N1,705 per dollar at the end of September to N1,730 per dollar at the end of October.,./

As a result, in October, the difference between the parallel market rate and the NAFEM rate decreased from N163.06 to N54.61 per dollar in September.

However, Cowry Asset Management PLC experts have predicted that the interaction between the Central Bank of Nigeria’s (CBN) facilitation of the supply and demand for foreign money will determine the exchange rate’s performance in Q4’24.

As CBN steps up its market involvement, we anticipate that the currency rate would trade within the current range of N1,500 to N1700 per dollar, barring any significant market distortion.

The interaction between the demand for foreign exchange and the supply made possible by the CBN will have a significant impact on the Naira’s performance in the fourth quarter of 2024. Improved oil output is one example of a positive trigger that might increase the value of the Naira.

Additionally, a rise in foreign exchange inflows is anticipated as the holiday season draws near. Note that the year’s season import orders are over, therefore we anticipate a slight slowdown in demand.