Dollar supply increases by 117% as Naira appreciates at FX market

The supply of the Dollar and other currencies increased by 117 percent at the foreign exchange market as the Naira strengthened on Friday.

FMDQ data showed that the foreign exchange transaction turnover, which indicates a rise in liquidity in the FX market, increased to $190.57 million on Friday from $87.51 million on Thursday.

This represents a $103 million or 117 percent increase compared to the $87.51 million.

The development comes as Naira gained at N1,541.52 and N1,663 against the dollar on Friday to end the week on a good note at the official and parallel foreign exchange.

Further week-on-week analysis showed that the Naira appreciated slightly against the N1,546.41 and N1665 exchange rate on Friday last week.

This comes as the Central Bank of Nigeria announced that it would hold its 297th Monetary Policy Committee meeting next week to decide on interest rates and other monetary policy measures.