Trading activity at the Nigerian Foreign Exchange Market (NFEM) remained substantial in September, with a total turnover of $12.98 billion recorded across 22 trading days. This reflects an average daily turnover of $590.20 million, indicating sustained market activity. Several trading sessions during the month recorded turnover above $600 million, showcasing the market's robust performance.
Despite the robust performance, the total NFEM turnover in September was $1.69 billion lower than the $14.68 billion recorded in August. This represents an 11.5 per cent decline on a month-on-month basis. However, the September figure demonstrates significant trading activity, with turnover spread across all 22 available trading sessions.
The strongest trading session in September was recorded on September 10, with a turnover of $1.45 billion. Other notable sessions included September 8 with $933.78 million, September 15 with $777.58 million, September 23 with $732.45 million, and September 22 with $694.58 million. These figures highlight the variability in trading activity throughout the month.
In addition to the high-turnover sessions, the market also recorded lower-volume sessions. September 28 saw the lowest daily turnover at $196.68 million. Other low-volume sessions included September 21 with $482.24 million and September 14 with $423.95 million. This variation in trading activity is a normal aspect of market operations.
Interbank trading was a significant component of NFEM activity in September, with total interbank turnover standing at approximately $2.95 billion. This accounted for about 22.7 per cent of the month's total NFEM turnover. The average daily interbank turnover was $134.22 million, with the highest interbank turnover recorded on September 10 at about $357.30 million.
The NFEM also recorded a considerable number of transactions in September, with a total of 6,831 deals. The highest number of deals on a single day was 470, recorded on September 10. Other days with a high number of deals included September 23 with 389 deals and September 15 with 374 deals. The lowest number of deals was recorded on September 28 at 206.
The September trading pattern indicates that market activity was concentrated around a few stronger sessions, with September 10 recording the highest turnover of $1.45 billion. Despite the month-on-month decline in turnover, the data suggests continued depth of activity in the NFEM. The market's performance reflects its resilience and ongoing role in facilitating foreign exchange transactions in Nigeria.
Key points
- NFEM recorded a total turnover of $12.98 billion in September.
- Interbank trading accounted for 22.7 per cent of the month's total NFEM turnover.
- The NFEM recorded 6,831 deals during the month of September.
