Nigeria’s $4.4bn FX Trading Week Exposes Weakness in Forex Market, Economist Warns.
The Chairman of the Alliance for Economic Research and Ethics (AERE), Dele Oye, has warned that Nigeria’s record $4.375 billion foreign exchange market turnover in a single week should not be mistaken for evidence of a stronger or more resilient forex market.
Instead, he said the milestone exposed structural weaknesses in the country’s foreign exchange system and underscored the need for greater transparency, stronger market depth and reforms to discourage the dollarisation of the economy.
In a statement titled “What a Record FX Week Really Reveals About Nigeria’s Market,” Oye argued that while the market demonstrated its ability to process a high volume of transactions, the surge did not necessarily reflect improved liquidity, stronger external reserves or broader access to foreign exchange.