Investors happy as FX window records $1.323bn transactions in one week

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.

In just one week, the total market turnover has risen to $1.323 billion from $803.1million .

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.

Trading volumes and values have continued to rise since August 11 as the total turnover on the forex window was put at $4 billion.

In addition, the forex window has helped banks to buoy their forex liquidity this year.

TheCAble reports that over the weekend, the managing director of Ecobank Nigeria, Charles Kie said that the I & E window has created a platform that makes forex readily available.

Posted by Juliet Ekwebelam