The FMDQ Exchange reported a significant rise in turnover in its foreign exchange market for November 2024, totalling N23.95tn ($14.39bn).

This is according to the FMDQ Markets Monthly Report obtained on Wednesday.

FMDQ is a financial market infrastructure in Nigeria that provides a platform for trading various financial instruments, including foreign exchange, fixed income, and derivatives.

This marked a 42.69 per cent increase month-on-month from N16.85tn ($10.08bn) recorded in October 2024.

Analysts attribute this to the rise in investor activity and adjustments in the country’s foreign exchange rate.

“Total turnover for the Spot and Derivatives Market was N58.22tn and N0.81tn, respectively, in November 2024. Spot FX Market Turnover was $14.39bn (N23.95tn) in November 2024, representing a MoM (month-on-month) increase of 42.69 per cent ($4.30bn) from the turnover recorded in October 2024 ($10.08bn),” the report stated.

In total, the spot market accounted for the majority of the turnover at N23.95tn, while the derivatives market saw a sharp decline in turnover, down by 82.41 per cent MoM to N0.81 trillion ($0.49bn).

The FX market turnover increase in November 2024 follows a notable year-on-year rise of 111.80 per cent, up from N28.79tn ($12.91bn) in November 2023.

Analysts attribute this growth to increased investor activity and adjustments in the FX rate, though challenges around currency volatility and liquidity remain concerns for market participants.

This surge in trading volume came as the Nigerian naira continued its downward trend against the US dollar, with the spot exchange rate averaging N1,667.41/$, reflecting a 2.14 per cent depreciation from the previous month’s rate of N1,631.71/$.

The naira traded within a range of ₦1,639.50/$ to N1,690.37/$ during the month, highlighting the ongoing pressures faced by the currency in the foreign exchange market.