By Elizabeth Adegbesan
THE volume of dollars traded (turnover) in the Investors and Exporters, I&E, window of the foreign exchange market rose sharply by 63 percent, month-on-month, to $6.7 billion in August from $4.12 billion in July 2019 .
This represents the second 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 and 60 percent to $6.7 billion in August.
Financial Vanguard analysis of weekly turnover in the window showed that $358.55 million was traded in the first two days of the first week of August. Turnover rose by 377 percent to $1.7 billion in the second week and down by nine percent to $1.63 billion in the third week.
Turnover, however, rose in the fourth week by 22 percent to $1.98 billion and dropped by 42 percent to $1.14 billion in the fifth week.
However, the naira depreciated by 70 kobo in August as the indicative exchange rate of the window rose to N362.93 per dollar on August 30 from N362.23 per dollar at the beginning of the month.