Dollar Turnover Hits $14.39 Billion in Foreign Exchange Market as Naira Trades at New Rate

• The FMDQ Exchange has reported a significant increase in forex supply in the Nigerian FX market
• The FMDQ revealed this in its monthly market report, released on December 25, 2025
• The report said foreign exchange turnover hit $14.39 billion, about N23.95 trillion, in November 2024

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

In its November 2024 FX market report, the FMDQ Exchange reported a significant increase in forex turnover of $14.39 billion, or about N23.95 trillion.

The information is according to the FMDQ Markets Monthly Report released on Wednesday, December 25, 2024.

Increase was due to heightened investor activities

FMDQ, a financial market infrastructure, provides a platform for trading various financial instruments, including FX, fixed income and derivatives.

The increase in FX turnover represents a 42.69% monthly rise from the $10.08 billion recorded in October 2024.

According to a Punch report, analysts attribute the increase to investor activity and adjustments in Nigeria’s forex rate.

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The FMDQ report disclosed that the Spot and Derivative Markets turnover was about N58.22 trillion and N0.81 trillion in November. Spot Forex Market Turnover was $14.39 billion in November 2024, representing a monthly increase of $42,69% from the turnover recorded in October.

Naira experiences depreciation

The spot market accounted for most of the turnover at N23.95 trillion, while the derivatives market witnessed a drop in turnover by 82.41% per month to N0.81 trillion.

The foreign exchange market turnover increase in November 2024 came amid a notable yearly increase of 111.80% from N28.79 trillion in November 2023.

Financial experts say the growth was due to enhanced investor activity and adjustments in the forex rate despite challenges around currency volatility and liquidity issues for market operators.

The increase in trading volume came amid the naira’s depreciation against the US dollar. The spot rate reportedly averaged N1,667.41 per dollar, a 2.14% decline from the previous month’s rate of 1,631.71 per dollar.

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Naira trades at new rates in an official window as Nigeria’s FX reserves grows

The Nigerian currency traded between N1,639.50 per dollar and N1,690.37 per dollar in November, showing ongoing pressure on the local currency.

Nigeria’s FX reserves rise

Meanwhile, the Central Bank of Nigeria (CBN) has reported an increase in the nation’s foreign exchange reserves.

The latest data from the CBN show that Nigeria’s gross external reserves have risen significantly as inflows from foreign portfolio investors have entered the economy.

The country’s gross external reserves hit $40.816 billion, representing a three-year high.

CBN revealed in a report that FX inflow via the economy rose 3.01% to $22.82 billion, up from $22.22 billion in the second quarter of 2024.

Consequently, net FX inflow into the economy declined by $2.97% to $14.46 billion, down from $14.89 billion the following quarter.

Naira trades at new rates in the official window

Legit.ng earlier reported that the naira traded lower in the FX market on Tuesday, December 24, 2024, trading at N1,540.65 per dollar, down from N1,345 it traded the previous day.

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The local currency began trading in EFEMS at N1,541 and closed at N1,540 per dollar.

Data from the FNDQ Exchange shows that the local currency's value dropped by 0.07% to close at N1,540.65 per dollar.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng