Despite the volatility experienced in the Nigeria’s foreign exchange market in the past one month, the volume of dollars traded in the Nigerian Foreign Exchange Market, NAFEM, window rose by 23.8 per cent, month-on-month to $2.23 billion in October 2023 from $1.8 billion in September, reflecting increased foreign exchange inflow in the economy during the period.
Consequently, the gap between the official and parallel market exchange rates widened to N354.68 per dollar on October 31st 2023 from N244.73 per dollar on September 29th. In their financial outlook for this week, analysts at Cowry Asset Management Plc said: “Nigeria’s foreign exchange reserves, while not at the peak, have indeed sparked concerns regarding the nation’s capacity to fulfill import requirements and meet its debt obligations. It’s worth noting that despite the recent decline, Nigeria’s foreign exchange reserves are still in a relatively robust position, equivalent to covering approximately 4.