The value of transactions traded at the Nigerian Autonomous Foreign Exchange Rate Fixing stood at $3.01 billion in June.
This was according to the data obtained by our correspondent at the FMDQ Group. This represents an increase of 19.4 per cent when compared to the $2.52 billion recorded in the month of May.
On Friday 23, July 2021, investors’ transaction value was estimated at $135.28 million.
The NAFEX was introduced by the Central Bank of Nigeria in April 2017 in response to the continuous fall of the Naira.
In the FMDQ Group introductory statement of NAFEX window, the group said: “This Market Notice is issued pursuant to the Central Bank of Nigeria’s circular dated April 21, 2017 (Ref: FMD/DIRCIR/GEN/08/007) and titled Establishment of Investors’ & Exporters’ FX Window which provides in clause 4.0 that in order to support appropriate benchmarking and facilitate derivatives activities in the newly established Investors’ & Exporters’ FX Window (the ‘Window’).
“FMDQ OTC Securities Exchange will be developing and publishing a new fixing called NAFEX – the Nigerian Autonomous Foreign Exchange Rate Fixing.
“NAFEX is the FMDQ reference rate for foreign exchange activities in the Investors’ & Exporters’ FX Window and is designed to represent Spot FX market rates in the Window.
“NAFEX rates will be generated independently and objectively and published every business day at 12 noon or at a time advised by FMDQ.”
Meanwhile, the Naira improves slightly against its global counterparts at the parallel market on Friday, as liquidity increased marginally across key forex markets.
The Naira gained N2 against the United States Dollar from N506 it traded last week Friday to N504, Friday.
Despite series of policies deployed at arresting the falling Naira and curb economic stagnation, the crude oil-backed Naira continued to struggle against its global counterparts.