Investors’ turnover in Forex market hit $4.3bn in 4 weeks

.. As CBN injects $531.4m in one week

Continuous huge transactions volume recorded in the last four weeks at the Investors and Exporters FX (I&E) window, has boosted the Nigeria’s foreign exchange market with a whopping total turnover of $4.3 billion in the last four weeks, Investigations by The Daily Times revealed.

Also, in line with its pledge to sustain liquidity and maintain stability in the Africa’s largest economy forex market, the Central Bank of Nigeria (CBN) had in the just concluded week injected total sum of $531.4 million, to meet customers’ requests in various segments of the market.

The apex bank created I&E FX window on 20 April, 2017, and in less than one year has contributed immensely to the growth of the forex market, boost Investors confidence, contributed to the high external reserves and the nation’s economy at large.

For instance, the Investors’ FX window between Monday 29, January and Friday 2, February, 2018, recorded total transactions turnover of $1688.1 bn, highest declared during the period considered.

Breakdown of the figure, showed that as of close of trading on Monday 29, January stood at $655.72m, before dropping to $334.32m the following day.

However, declined to $125.08m at the mid week, although, rebounded on the Thursday 1, February, but eventually closed the week low at $251.77m.

The second week, settled with lower traded figure of $955.92m compared to the previous week of $1688.1bn, totaling $2.644.02bn declared at the special window in weeks.

Our further checks, however, showed that transactions turnover recorded in the third week during the period considered, precisely, between Mondays 12, February to Friday 16 this month depreciated to $770.76m against $955.92m, represented the lowest during the period, but amounted to $3.415bn in three weeks.

In the just concluded week, I&E FX window, otherwise known as Nigerian Autonomous Foreign Exchange (NAFEX) , rebounded with an improved turnover of $876m better than $770.76m, but lower than $955.92m and $1688.1bn declared in the first and seconded week during the period considered, respectively.

Finance experts and industry stakeholders, believed that huge daily transactions turnover constantly declared in NAFEX window, has contributed significantly in restoring confidence on the Nigerian foreign exchange market.

Since the creation of the special window in April last year and end of January this year, it has helped the nation’s rebounded economy with a whopping traded turnover of $31.46 bn.

The Daily Times, findings notes that I&E FX has contributed to the forex market in the first month of its creation April 2017with at $0.61bn, before its significant improvement to $1.32bn or 114 per cent in May.

The figure declared in June moved up to $1.63bn and increased further in July to $1.86bn and $3.54bn in August 2017.

The I&E FX window, however, traded second highest turnover of $4.61bn in September since establishment, but depreciated to $4.30bn in October.

In November, the autonomous forex window, declared total transactions worth of $4.51bn, while the year 2017 closed with traded turnover of $3.27bn.

On the other hand, the NAFEX in January 2018, recorded total traded turnover of $6.1bn, the highest transactions ever recorded since the autonomous forex window was opened in 2017.

Meanwhile, the Central Bank on the last trading of last week, again intervened in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $321.4 m.

Figures obtained from the Bank on Friday, February 23, 2018, indicated that the amount released was for requests in the agricultural, airlines, petroleum products and raw materials and machinery sectors.

The Acting Director, Corporate Communications at the CBN, Isaac Okorafor confirmed the figures and noted that the continued interventions were in line with the assurances made by the Governor, Godwin Emefiele, to sustain market liquidity in order to boost production and trade and maintain stability in the forex market.

Speaking further, Okorafor assured that the CBN remained very committed to ensuring that all the sectors continue to enjoy access to the foreign exchange required for the business concerns.

It would be recalled that earlier in the week under review, apex bank lifted the foreign exchange market with $210m, to meet customers’ requests in various segments of the forex market.

The bank, explained that it offered $100m to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got the sum of $55m.

According to figures obtained from the bank, customers in need of foreign exchange for invisibles, such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55m.

The bank’s spokes person, reiterated the Bank’s commitment to continuously interven in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability.

He said that the CBN would continue to strategically manage the forex with a view to reducing the country’s import bills and halting depletion of its foreign reserves.