Naira Unification: Forex Inflow Rises By 28% To $1.41bn
Written by Bukola Idowu 2 weeks ago

Following the harmonisation of the exchange rates in the country by the Central Bank of Nigeria (CBN), the total inflows into the Importers & Exporters (I&E) Window increased by about $270 million to close the month of June 2023 at $1.41billion, LEADERSHIP has learnt.

This made it the second consecutive month of growth, rising by 23.8 per cent month-on-month to $1.41 billion in June as against $1.14 billion recorded in May.

President Bola Ahmed Tinubu had earlier in June 2023 announced the intention of his administration to harmonise the exchange rates in the country, leading to the collapse of the forex market by CBN.


Although, foreign investors are yet to come trooping into Nigeria following the floating of the naira, a move that is targeted at attracting foreign exchange inflows into the country, the latest data by the FMDQ shows an improvement in dollar inflow into the country.

Data obtained from the FMDQ shows that foreign inflows, which were up by 44.3 per cent month on month to $298.8 million, had in the month under review increased but remain underwhelming relative to pre-pandemic levels in 2019 when it recorded an average of $1.56 billion as foreign investors continue to be cautious about returning in their droves despite the foreign exchange market liberalisation.

On the other hand, local inflows rose further by 19.3 per cent month on month to $1.11 billion because of higher inflows from non-bank corporates which went up by 35.7 per cent to $597.10 million and exporters’ inflow which was up 2.3 per cent to $448.00 million.

Analysts at Cordros Research believe that foreign investors will likely adopt a wait-and-see approach in the near term as they await the CBN’s actions in clearing its foreign exchange backlogs and the direction of short-term interest rates amid high inflation.


The analysts, in an emailed note, said they “expect the lingering reforms in the foreign exchange market to translate to improvements in forex liquidity conditions over the medium term as market participants’ confidence builds up.

On the revision of the computation methodologies of the NAFEX and I&E spot rates by the FMDQ, the analysts say the revision aligns with the global shift in benchmark administration to a transaction-based model and the ongoing reforms in the domestic forex market.

The latest revision which was announced last week effects a transition from the current contributions-based model, which involves the use of indicative quotes from market participants to a transactions-based model that will apply actual forex market transaction data effective 5 July 2023.

“On the one hand, we expect the computation changes to improve transparency in the computation of the spot forex rates and provide a clearer picture of the forex rates reflective of the market realities at different times, albeit with increased intra-day volatility. Similarly, the IOCs being permitted to sell their dollars to dealing members will likely increase forex liquidity in the IEW over the medium term, supporting the local currency,” they stressed.

Meanwhile, the first trading week in July 2023 began in the foreign exchange market bearish for the local currency as the naira depreciated by N19.20 or 2.48 per cent week on week to N792.20 to the dollar from N773 at the parallel market as forex market and traders continue reacting to the forces of demand and supply.


At the I&E window, the naira depreciated by 1.0 per cent to N776.90 to the dollar with total turnover (as of 6th July) declining by 48.1 per cent to $367.23 million. Forex trades at the I&E window were consummated within the N600 and N820 per dollar band.

Analysis of the activities of the Naira at the Forward Contracts Market last week showed that the local currency weakened across all forward contracts against the dollar by 4.74 per cent, 4.59 per cent, 4.47 per cent, 4.14 per cent and 3.64 per cent to close at N801.22, N810.72, N820.24, N849.13 and N910.26 at the 1-month, 2-month, 3-month, 6-month and 12-month tenor contracts respectively.

Elsewhere, oil futures closed higher on Friday as the Brent Crude hit $78.50 per barrel, at the time of writing, as supply concerns begin to seep through on supply concerns following decisions by Saudi Arabia and Russia to cut production and export quotas. Also, the Bonny Light crude price took a reversal by 3.33 per cent, or $2.54 w/w, to close at $78.76 per barrel from $76.22 per barrel in the previous week.

As the foreign exchange market remains volatile in the near term, analysts at Cowry Assets Research say they anticipate the market to adjust in line with the prevailing forces of demand and supply trade in a calm position against the greenback barring any further market distortions.

https://leadership.ng/naira-unification-forex-inflow-rises-by-28-to-1-41bn/

In a matter of time, the FDI inflow will pick up too. Those unpatriotic elements who are hoarding USD will eventually get burnt and will still be prosecuted.
Asiwaju Bola Ahmed Tinubu is the best! God bless Nigeria for ever! Check my signature for free stuffs!

So where is the forex?

Who is holding from circulation?

E go set for this nation one day.

We don too suffer, time to smile and say yes am a Nigerian is coming very soon.

Good

Enemies of Nigeria should stay away from this thread or we go send thunder to them.

FreeStuffsNG:
In a matter of time, the FDI inflow will pick up too. Those unpatriotic elements who are hoarding USD will eventually get burnt and will still be prosecuted.
Asiwaju Bola Ahmed Tinubu is the best! God bless Nigeria for ever!

Stop yapping okpa guy! you should focus on remittances from naija diaspora....that is the real economy! How do you attract Nigerians to invest in their country,the way Ghanaians abroad are doing...even now many Nigerians are buying up homes in Ghana and Rwanda..............rule with equity and justice,so that Nigerians feel safe and secure in their homes...not looking the other way ,while fulanis run riot all over Nigeria ,maiming ppl! Let escobar bite the bullet and go after the saheliansavages killing people....and we may just forgive him for his electoral heist!

helinues:
Good

Enemies of Nigeria should stay away from this thread or we go send thunder to them.

This picture wey you post self

Propaganda
..

If Naira does not get to 1000 a. $ by December then know say no be me dey talk.

Una like suffer...

Una go suffer well well I swear

TheboyGhost:
Propaganda
..

If Naira does not get to 1000 a. $ by December then know say no be me dey talk.

Una like suffer...

Una go suffer well well I swear

Can you explain why you feel naira will be #1000/$1?

Ikaeniyan0:
Can you explain why you feel naira will be #1000/$1?

The Economy will collapse further.

TheboyGhost:
Propaganda
..

If Naira does not get to 1000 a. $ by December then know say no be me dey talk.

Una like suffer...

Una go suffer well well I swear

As you have wished suffering on your family, so shall it be

TheboyGhost:


The Economy will collapse further.

You mean your family?

FreeStuffsNG:
In a matter of time, the FDI inflow will pick up too. Those unpatriotic elements who are hoarding USD will eventually get burnt and will still be prosecuted.
Asiwaju Bola Ahmed Tinubu is the best! God bless Nigeria for ever!

Hoarding? Do you think before posting? Is it anyone's business if one doesn't want to withdraw dollar from his account? Your ignorance should be prosecuted.

helinues:
Good

Enemies of Nigeria should stay away from this thread or we go send thunder to them.

The real enemies are the ones that want to share 8,000 naira to a family of four while they budgeted billions for their personal allowances.

WorldRichest:


As you have wished suffering on your family, so shall it be

Sorry, but I did not mention that any of my family was Nigerian.

Stop been emotional.

WorldRichest:


You mean your family?

My Family already collapsed and we ar trying to build back .....

Now, listen to me when I tell you Naira will crashhhhhhhhhhhhhh
...

How much is it as of today?

860 I believe 🤔

Just watch the magic by December

TheboyGhost:


The Economy will collapse further.

Why will it collapse further? What are the indices you're seeing that makes you feel so

Ikaeniyan0:
Why will it collapse further? What are the indices you're seeing that makes you feel so

The new leader is up against very wicked Enemies that will choose to destroy the economy.

I am not an Economist, just a political analyser stating my views .

Yawnsss

How much be dollar today?
🥱🥱🥱🥱

TheboyGhost:


The new leader is up against very wicked Enemies that will choose to destroy the economy.

I am not an Economist, just a political analyser stating my views .

Okay boss

When I saw the headline, I was sure that the author was a Yoruba... And I wasn't disappointed.

Anything to launder the irreversibly battered image of the mandate thief is allowed

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TheboyGhost:


The Ecolnomy will collapse further.

Any reason why you are looking forward to the economy to collapse?

Irrespective of who you wanted to become president, why don't you wish your country success?

There may be political enemies, arguments and all in America. But once an election is over, all Americans irrespective of who they voted for always want the country to progress. Even trump supporters have never wished that US fails under Biden. Why is our case different in Nigeria

ebufa:

Stop yapping okpa guy! you should focus on remittances from naija diaspora....that is the real economy! How do you attract Nigerians to invest in their country,the way Ghanaians abroad are doing...even now many Nigerians are buying up homes in Ghana and Rwanda..............rule with equity and justice,so that Nigerians feel safe and secure in their homes...not looking the other way ,while fulanis run riot all over Nigeria ,maiming ppl! Let escobar bite the bullet and go after the saheliansavages killing people....and we may just forgive him for his electoral heist!

You may feel like Nigeria is shitty but I assure you that Ghana is worse than shit.
As for Rwanda, there is nothing outside Kigali, I mean nada! The Rwandan bubble burst a long time ago and unfortunately, you don't know that yet.

FreeStuffsNG:
Naira Unification: Forex Inflow Rises By 28% To $1.41bn
Written by Bukola Idowu 2 weeks ago





https://leadership.ng/naira-unification-forex-inflow-rises-by-28-to-1-41bn/

Hyped headline the pounds is still 1125

WorldRichest:
Unfortunately illiterate drug traffickers, baby factory merchants and others selling Gala and La Casera inside Lagos holdups will not understand this. It is beyond their comprehension.

I was about to type the bolded. This is beyond the brain capacity of a lot of Nigerians

Destined2win:
So where is the forex?

Who is holding from circulation?

It must be Tinubu and his propaganda team that are posting two weeks old news, which has been inconsequential to the galloping exchange rate. Or who else would be holding the foreign currency from circulation

OkayDaddy:


You may feel like Nigeria is shitty but I assure you that Ghana is worse than shit.
As for Rwanda, there is nothing outside Kigali, I mean nada! The Rwandan bubble burst a long time ago and unfortunately, you don't know that yet.

Most of those small African counties they hype only have one small town they develop to attract tourism...the other places are worse than the worst places in Nigeria

Ikaeniyan0:
Can you explain why you feel naira will be #1000/$1?

He doesn't need to explain. That's what will happen. Nigeria is on autopilot and APC propaganda is everywhere.