NAFEX boosted investors’ confidence with $4.3bn turnover in one month
The Nigerian Autonomous Foreign Exchange (NAFEX) window, has again boosted already restored investors’ confidence in the Nigerian foreign exchange management and policies, as well as it rebounded economy, with the total transacted turnover of $4.3 billion in one month.
In just four days of the concluded week alone, the autonomous forex window declared traded figure of $823.9 million from Monday 27 November to Thursday 30th of the same month.
For instance, the first trading in the week under review recorded transacted figure of $178. 78m, but appreciated the following day to close at $227.73m,
however, it relapsed at the mid week to exchanged just $198.71m lower than previous day but better than first trading day before closing the month on a positive note with an appreciated turnover of $218.66m on Thursday.
The Daily Times findings, however, showed that the NAFEX, in the previous week, recorded a stronger transacted turnover of $1.06 billion between Monday 20 November and Friday 24 November 2017.
The NAFEX, on Monday 20, November, sold total transacted turnover of $346.36m, represented the second highest turnover in the week, and better than $266.41m sold in the corresponding period last week, but recorded the lowest for the week on Tuesday with $78.48m traded figure.
At the close of Wednesday’s trading activities, the mid week trading closed at a rebounded figure of $234.23m turnover, compared to $96.43m stood last Tuesday.
Although, it relapsed the following day to close at $214.84m, weaker than 359.53m sold on a week ago and dropped further to close the week at $179.78m, compared to $346.36m transacted the previous Friday.
The level of confidence in the Nigerian economy continues to be lifted as the autonomous window recorded a significant traded turnover of $1.115.69bn from 13 of November to 17th of the same period.
However, the breakdown of the daily turnover showed that the window on Monday recorded a whopping $286.41m, against $96.43m traded the following day;
and a more depreciated traded on Wednesday $86.99m, before rebounded on Thursday with $299.50m; and wrapped up the week with the highest figure of $346.36m on Friday, 17 November, 2017.
Further checks by the Daily Times, revealed that the autonomous window, also, known as Investor & Exporter FX (I&E) window, at the beginning of the month under review had recorded total amount of $387.73m in just three days, between Wednesday 1st of November to Friday 3rd of the same month.
In our fact findings, we observed that the I &E FX in October rose by 7.3 per cent to $4.53bn from $4.22bn in September 2017. In the I&E FX window for August moved to $3.68bn, an increase of 62.8 per cent from $2.26bn in July.
However, the autonomous FX window recorded $14.69 billion in four months, between July and September 2017, as Central Bank of Nigeria (CBN) continued to bridge the gap between parallel market and official market rates.
FMDQ OTC had reported that 10 commercial bank traded N70.88trillion overall turnover on the FMDQ OTC Securities Exchange between January to September, 2017.
Meanwhile, the apex bank has defended the local currency with $4.8bn between July and October this year.
Data gathered by our correspondent revealed that the apex bank highest intervention in four months under review was $1.5 billion in August, followed by $1.37 billion in October.
The CBN had defended the Naira with $1.2bn and $727.5m in September and July of 2017 respectively.
For the first three months, the CBN’s $1.37bn in October comprises of $400m in whole sale; $200m in Small and Medium Enterprises (SMEs); $180m in invisibles; $306.3m in SMIS, and $285.70m in agriculture, airlines, petroleum, and raw materials segments.
In September, the apex bank injected $485 million to Retail Secondary Market; SMEs, $300m; invisibles $255m and $200m, to wholesale segments
The bulk of the disbursement totaling $561 million in August was injected to the clearance of the backlog of matured foreign exchange obligations for raw materials and machinery for manufacturing companies, agricultural chemicals,
and airlines – was for Retail Secondary Market Intervention Sales (SMIS), while the balance went to settling wholesale, $500m; SMEs, $235m, and invisible $200m.
Motolani Oseni
