Turnover in Nigeria’s foreign exchange market jumped to $844 million on February 3, the highest inflows since June 2, 2022, according to data compiled by the FMDQ OTC Ltd. exchange.
The amount is three times more than the $266 million traded on February 1.
The spike can be attributed to the latest reforms by CBN governor, Olayemi Cardoso, who unveiled a series of measures that enabled the naira to trade more freely against the dollar.
There is better transparency in the official market and banks were mandated to offload excess dollars. The CBN also removed the cap on transactions by the International Money Transfer Operators (IMTOs).
The improved supply is rubbing off on the embattled naira which suffered wild swings last week.
The naira strengthened to N1419/$ on Monday, up from N1435/$ Friday.