Trading results from the FMDQ OTC Securities Exchange, has shown that foreign exchange trading at the investors’ and exporters’ (I & E) window recorded an unprecedented high.
The total market turnover rose to $1.323 billion from $803.1million in just one week.
The surge in activities at the I & E window was linked to offshore investor interest in treasury bills and the primary market auction (PMA), held last week by the Central Bank of Nigeria (CBN).
This comes on the heels of the CBN’s introduction of the I & E window, including a range of other measures to improve dollar liquidity in the forex market.
The central bank has since stepped in to actively support the local currency while keeping domestic liquidity conditions on a leash.
As of August 11, total turnover on the forex window was put at $4 billion and trading volumes and values have continued to rise.
In addition, the forex window has helped banks to buoy their forex liquidity this year.
Over the weekend, Charles Kie, managing director of Ecobank Nigeria, said that the I & E window has created a platform that makes forex readily available.