Naira strengthens to N1,346.90/$ as weekly FX turnover doubles to $4.5 billion in one week

The naira strengthened by 0.84% against the US dollar at the Nigerian Foreign Exchange Market (NAFEM) this week, closing at N1,346.90/$ on Friday from N1,358.25/$ recorded on August 14.

This is according to the data from the Central Bank of Nigeria’s (CBN) website on Friday.

The currency gained N11.35 during the week as foreign exchange activity increased significantly, with NAFEM transactions reaching about $4.52 billion between Monday and Friday.

Weekly FX turnover more than doubled from approximately $2.18 billion recorded during the previous trading week of August 10–14, representing a 107.6% increase.

What the data is saying

CBN data showed that the naira traded between N1,342/$ and N1,348/$ on Friday, with a weighted average rate of N1,346.49/$ and a simple average of N1,346.07/$.

• The currency opened the week at N1,350/$ on August 17 and strengthened to N1,346.90/$ by Friday.
• It traded as high as N1,361/$ and as low as N1,347/$ on Monday before closing at N1,350/$. The naira closed at N1,350.70/$ on August 18, N1,351/$ on August 19 and N1,347.50/$ on August 20.
• Friday’s N1,346.90/$ close was the strongest level recorded during the week.
• The sharp increase in turnover was driven by elevated activity throughout the week. NAFEM turnover stood at $1.41 billion on August 17, $1.08 billion on August 18, $1.11 billion on August 19 and $920.46 million on August 20.

As of the time of filing this report at 6:15 pm on Friday, August 21 CBN has not provided the NFEM total turnover for the day.

• By comparison, daily turnover in the previous week ranged from $185 million to $607.47 million. August 11 recorded the lowest turnover at $185 million, while August 12 posted the highest at $607.47 million.
• Interbank transactions also recorded substantial activity, with turnover of $437.53 million on August 17, $364.71…