FX MARKET TRADING JUMPS 22% IN JUNE – REPORT

Nigeria’s foreign exchange market witnessed a significant surge in trading activities in June, recording a 22 per cent increase compared to the previous month, according to a new report by financial analysts.

The report, released by a leading economic research firm, attributed the jump to improved liquidity, Central Bank of Nigeria interventions, and growing investor confidence amid ongoing macroeconomic reforms. Daily average turnover in the FX market rose substantially, reflecting heightened participation by both institutional and retail players.

Analysts noted that the naira exhibited relative stability during the period, supported by increased supply of foreign currency from oil revenues, diaspora remittances, and non-oil exports. “The 22 per cent growth signals a more vibrant and resilient FX market, which is crucial for economic recovery,” the report stated.

Market operators welcomed the development, saying it demonstrates the positive impact of recent policy measures aimed at unifying exchange rates and boosting investor appetite. However, they cautioned that sustained gains would depend on continued fiscal discipline and structural reforms.

The surge in FX trading volume is expected to ease pressure on the naira and support import activities, particularly for raw materials and essential commodities. Economists project that this momentum could strengthen further in the third quarter if global oil prices remain favourable and domestic production ramps up.

Stakeholders have called for more transparency and deeper market reforms to consolidate these gains and build long-term confidence in the nation’s currency.