CEM REPORT, MARKET | Turnover Trade at the Investors & Exporters Foreign Exchange (I&E FX) market increased by 14.25 per cent within January and February 2023.
The exchange window experienced an increase by N1.18 trillion to stand at N9.46 trillion in the first two months of 2023 from N8.28 trillion recorded in the first two months of 2022.
According to the FMDQ report, turnover trade at I & E FX window in 2023 dominated transactions, followed by CBN bills that comprises of Open Market Operations (OMO) and CBN Special Bills
A breakdown of the report reveals that turnover trade at I & E FX market in January 2023 stood at N4.79 trillion from N4.22 trillion in January 2022, and for February 2023, it gained N0.61 trillion to N4.67 trillion as against N4.06 trillion reported in February 2022.
Analysis of the report showed that between January and February 2023, a total of N5.66 trillion traded by the CBN was traded on the FMDQ exchange.
The report also revealed that secondary market turnover on FMDQ Exchange in first two months of 2023 stood at N27.7trillion compared to N28.36trillion in first two months of 2022.
Furthermore, the report revealed that exchange rate volatility increased marginally in February 2023 as the Naira traded within an exchange rate range of N461.00 -462.17 against the dollar compared to N461.00 -N462.00 against the dollar recorded in January 2023.
The I&E FX window was created in 2017 by the Central Bank of Nigeria (CBN) and it is a market trading segment for Investors, Exporters and End-users.
It allows foreign exchange trades to be made at exchange rates determined based on prevailing market circumstances, thus ensuring efficient and effective price discovery in the Nigerian foreign exchange market.