Exporters, non-bank corporates drive 64% weekly dollar inflows.

Exporters and non-bank corporates contributed 64 percent of the total dollar inflows into the Nigerian Foreign Exchange Market (NFEM) window last week.

The contribution of exporters and non-bank corporates was the highest of all the groups. The NFEM window recorded an inflow of $1.0bn last week, marking a 25.4 percent decline from $1.34bn recorded in the prior week, according to a report by Coronation Asset Management.

A breakdown of the dollar inflow contribution showed that the Central Bank of Nigeria (CBN) accounted for 14.29 percent of the total, while Foreign Portfolio Investors (FPIs) brought in 18 percent.

Non-bank corporates contributed 35.55 percent, whereas exporters brought in 28.06 percent. Inflows from ‘other sources’ accounted for 4.10 percent.

In the foreign exchange market last week, the naira slightly fell by 0.05 percent against the US dollar in the official spot market, closing at N1,517.93/$ on Friday.

The one-month forward rate closed at N1,577.80/$1, while the three-month forward contract rate closed at N1,654.10/$1. The one-year forward rate closed at N1764.98/$1. At the parallel market, popularly called the black market, the naira closed at N1,580, representing N5 loss compared to N1,575 closed on Monday.

Source: Businessday