Daily FX turnover soars to record high as Naira gains momentum

The daily forex turnover soared to $857 million on Thursday, March 28th, marking the highest level since the Central Bank implemented its new forex policies.

This is also the largest turnover since 2021, according to records, with the closest figure being $760 million on June 2nd, 2022.

The average daily forex turnover recorded in March has been around $220 million, while this year we have seen $177 million in daily average forex turnover.

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Forex turnover is a critical metric in the financial world as it represents the total value of all foreign exchange transactions completed within a specific timeframe, providing insights into the liquidity and vibrancy of the forex market.

High turnover rates indicate a highly active market with numerous participants engaging in buying and selling currencies, which can signal investor confidence and economic stability.

Meanwhile, the exchange rate on the official market weakened slightly to N1309/$1 on close of trading compared to the N1300/$1 recorded a day earlier. However, it still falls within the 8 week low for the Naira as it continues to gain strength against the US dollar.