Checkout Magazine has learnt that the total inflows into the foreign exchange (forex) market rose by about 42 per cent last month to hit its highest level in the past five years.
This is as domestic and foreign investors continued to react positively to the nation’s macro-economic reforms.
Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) at the weekend showed that the forex inflows have sustained double-digit growth. The naira also continued its rally.
NAFEM data, obtained from the FMDQ, showed that inflows rose by 41.7 per cent which translates to moving from $2.64 billion in February to $3.75 billion last month, the highest level since March 2019.
The upsurge was driven by a significant increase in supplies from both domestic and foreign sources. The rally was notably driven by non-government sources, with less inflows from the Central Bank of Nigeria (CBN).
A breakdown showed that domestic sources accounted for 59 per cent of total transactions while foreign sources contributed 41 per cent.
Notably, inflows from foreign sources jumped by 39.6 per cent from $1.10 billion in February 202 to $1.54 billion last month.
Inflows from local sources increased by 43.2 per cent from $1.54 billion in February to $2.21 billion last month,, with double digit growths across the non-CBN sources.
While inflow from the CBN dropped by 65.7 per cent, inflows from individual domestic sources quadrupled by 405.8 percent, non-bank corporate sources rose by 157.7 percent while inflows from exports grew by 14.6 percent.
