The foreign exchange market saw a significant drop in turnover on Wednesday, falling to $166 million after hitting a record high of $1 billion the day before. This sharp decline in FX transactions was reported by FMDQ, highlighting the volatility of the market.
Despite the decrease in turnover, the naira managed to strengthen against the dollar at the official foreign exchange market. Data from FMDQ revealed that N1,262.85 was exchanged for a dollar on Wednesday, marking an improvement from the previous day’s rate of N1,278.58. This positive shift resulted in a gain of N15.73 compared to Tuesday’s trading rate.
However, the country continues to face challenges with rising food prices, as inflation remains a pressing issue. Nigeria’s food inflation soared to 37.92 percent in February, reflecting the ongoing economic struggles faced by many citizens.
As the nation grapples with economic uncertainties, the foreign exchange market serves as a key indicator of the country’s financial health. The fluctuating turnover and exchange rates underscore the need for stability and strategic economic planning to address the challenges at hand.
