The total inflows into the foreign exchange (forex) market have reached a new threshold of $4.05 billion following increasing confidence in the Nigeria’s macroeconomic outlook. The outlook continues to win domestic and global supports.
Latest report at the Nigerian Autonomous Foreign Exchange Market (NAFEM) yesterday indicated that monthly inflows to the forex market rose to $4.05 billion last month, an increase of more than $1 billion.
The surge was particularly driven by inflows from foreign sources, which jumped to its highest level in nearly five years.
The report showed increasing uptick in forex inflows with a successive monthly improvement.
The inflows rose from $3.04 billion in October to $4.05 billion in November, representing an increase of 32.9 per cent.
NAFEM data, obtained from the FMDQ Securities Exchange, showed improved inflows from domestic and foreign sources, providing a steady mix for the stability and liquidity that have characterised the forex market in recent period.
A breakdown indicated that inflows from foreign sources rose by 26 per cent from $1.36 billion in October to $1.71 billion in November, its highest level since January 2020.
The increase in inflows from foreign sources was driven by substantial inflows from foreign portfolio investors and other companies, which rose by 39.9 per cent and 43.9 per cent respectively.
Inflows from local sources also rose by 38.5 per cent from $1.69 billion to $2.34 billion, driven by inflows from the Central Bank of Nigeria (CBN) and non-bank corporates, which rose by 27 per cent and 56 per cent respectively.
Inflows from individuals and exporters however fell by 88.5 per cent and 63.5 per cent respectively.
The latest NAFEM data came on the heels of a major rally by the naira after the apex bank launched a new forex trading system aimed at streamlining forex transactions. The CBN had last Monday launched its Electronic Foreign Exchange Matching System (EFEMS), shining a deeper light on transactions.
