Uncertainty of the forex market remains due to liquidity shortage across markets.
Naira depreciated to N462 at investors and exporters window, while forex turnover went up by 117 per cent at the black market.
Forex turnover at the Investor and exporters window continued with the positive trend as it rose by 42 per cent on Tuesday, providing a semblance of a boost to liquidity in the foreign exchange market.
This is according to data from the FMDQ, an exchange where forex is traded by foreign investors and exporters.
According to the data tracked by Financial Street, forex turnover rose from $63.44m penultimate Monday to $90.09m on Tuesday, representing a 42 per cent increase, day-on-day.
While the increase in percentage terms appears to be modest, daily turnover of $90.09m still falls short of the over $200m recorded in January 2020.
Although the liquidity in the foreign exchange market appears to have improved, the uncertainty of the market remains, particularly due to liquidity shortages across markets.
Liquidity remains quite tight in the foreign exchange market, with the average turnover in the I&E market significantly down to about $45.5m in May compared to $297.5m that was recorded in January.
Several reports tracked by Financial Street indicated that the accumulated demand for forex in the market could be between $1.5 and $5bn as supply shortages persist. Forex shortage has persisted since the crash in oil prices coincided with the global lockdown.
