Naira Gains as Non-Bank Corporate Drives FX Inflows
The naira gained against the dominant US dollar in the foreign exchange window of the Central Bank of Nigeria (CBN) as demand pressures reduced at the beginning of the week.
Data from the Nigeria Foreign Exchange Market (NFEM) of the CBN showed that the daily official spot FX rate climbed to N1600.4396 per dollar after a $270 million FX intervention last week.
Trading activities were consummated between the range of N1,595 and N1,605, according to intraday spot FX data. But the exchange rate worsened in the parallel market, closing at N1,635 from N1,620 per greenback amidst uncertainties about CBN FX sales at the official rate to bureau de change.
Inflows into the forex market declined last week, according to Coronation Research, while non-bank corporate continue to drive the amount on the supply side. The Nigerian Autonomous Foreign Exchange Market (NAFEM) recorded an inflow of US$619 million, down by 7.33% compared to US$668 million in the previous week.
The inflow was 7.34% less week on week. The CBN accounted for 18.00% of the total inflow, FPIs 16.78%, non-bank corporates 34.27%, and exporters 28.17%, while other sources accounted for 2.78%. #Naira Gains as Non-Bank Corporate Drives FX Inflows Otudeko: Court Adjourns to Allow for Continuation of Settlement Talk
