The volume of dollars traded (turnover) in the Investors and Exporters (I&E) window of the foreign exchange market rose sharply by 38 percent, month-on-month, to $4.12 billion in July from $2.9 billion in June, 2019.
This represents the first monthly increase in the volume of dollars traded (turnover) in the window since February.
Turnover in the window rose by 204 percent to $9.13 billion in February, courtesy of increased inflow from foreign portfolio investors (FPIs). This was, however, followed by 22 percent decline to $7.48 billion in March, and another 38.5 percent decline to $4.6 billion in April.
The I&E turnover further declined by 8.6 percent to $4.2 billion in May, and again by 31 percent to $2.9 billion in June, from where it rose by 38 percent to $4 billion in July.
Analysis of weekly turnover in the window showed that $1.4 billion was traded in the first week of July. Turnover dropped by 61 percent to $536.53 million in the second week and up by 120 percent to $1.2 billion in the third week. Turnover, however, nosedived in the fourth week by 38 percent to $736.15 million. In the last two days of the fifth week of July turnover stood at $202.4 million.
In spite of the sharp increase in the turnover, the naira depreciated by N1.11 kobo in July as the indicative exchange rate of the window rose to N361.68 per dollar on July 31 from N360.57 per dollar on July 1.