The Central Bank of Nigeria has reported that foreign exchange (FX) inflows into the country rose to $2.55 billion in two months following the naira unification.
According to the information contained in the apex bank’s July Updates, the total inflows into the Investors and Exporters (I&E) window increased for the second consecutive month in June to $1.41 billion from $1.14 billion in May.
The bank noted that the June inflows mostly came from companies and exporters as foreign investors continue to stall with capital flows.
Total inflows of $2.5 billion
According to the apex bank total inflows since the unification amounts to $2.5 billion made up of $1.4 billion and $1.14 billion in May and June respectively.
- “The total inflows into the Investors and Exporters window rose to $2.55 billion in the months of May and June following the unification of exchange rates by the Central Bank of Nigeria. The data indicated that inflows into the I&E window increased for the second consecutive month in June to $1.41bn from $1.14bn in May.”
The apex bank also stated that the domestic forex market continued to sustain supply with over 90% of the total inflow in June.
- “However, local inflow continued to sustain market, hitting $1.11b in June because of higher inflows
from non-bank corporates ($597.10m) and exporters ($448 million).”
Recall that in June, The Central Bank of Nigeria (CBN) announced the unification of all segments of the forex market collapsing all windows into one in a bid to improve liquidity and stability.
- The exchange rate unification has seen mixed reactions from different segments of the country.
- Just recently, companies released their Q2 financial statements where most of them recorded pre-tax losses due to foreign exchange revaluation losses despite having improved revenues.
- The naira unification has also seen prices of fuel increase to N640/ltr as Nigeria copes with the fuel subsidy removal.
Despite the fact that the naira continues to plunge against the dollar, experts believe that exchange rate unification would lead to improvements in FX liquidity over the medium term and long term.
Some experts also believe there would be an inflow of investors in various sectors of the economy due to the naira float.
- Meanwhile, the naira plummeted to another record low of N930/$1 at the parallel market on Thursday, August 10, 2023, as the demand for dollars by importers and other end-users far outstrips supply.
- Operators who spoke to Nairametrics quoted rates as high as N930/$1 as against the N910/$1 that was quoted on Wednesday as they continue to lament the scarcity of dollars amid higher demand.
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