The Nigerian official foreign exchange (FX) market saw a significant decline in turnover during the first two weeks of August 2024, coinciding with a Retail Dutch Auction by the Central Bank of Nigeria (CBN).
Total FX turnover fell by $409.16 million to $1.5 billion, compared to $1.91 billion in the last two weeks of July.
However, a weekly analysis showed a 15% increase in turnover between the first and second weeks of August, from $698.01 million to $804.74 million.
During this period, the naira depreciated by 5% against the dollar, falling from N1,500.32/$1 on July 22, 2024, to N1,579.89/$1 on August 16, 2024.
The steepest decline occurred on July 23, when the naira dropped by 3.13% to N1,548.76/$1.
Despite some brief periods of appreciation, the naira continued its downward trend, reflecting the ongoing pressure in the FX market.
The fluctuations in FX turnover suggest varying levels of market liquidity and potential interventions by regulators to stabilize the naira.
In early August, the CBN conducted a Retail Dutch Auction, selling $876.26 million at N1,495/$1 to 26 banks.
Despite these efforts, the FX market remains volatile, with one of the lowest daily turnovers recorded on August 6, 2024, at just $61.9 million.