MON JULY 14 2025-theGBJournal| Total inflows into the Nigerian Foreign Exchange Market (NFEM) declined by 28.1% m/m to US$4.84 billion in June (May: US$6.74 billion), according to the data from FMDQ.
The outturn was primarily due to a substantial decline in inflows from local sources (43.7% of total inflows). Specifically, inflows from local sources dipped to a four month low, decreasing by 61.4% m/m to US$2.11 billion (May: US$5.48 billion) following declines in inflows across individuals (-91.6% m/m), Central Bank of Nigeria (CBN) (-77.2% m/m), exporters/importers (-74.4% m/m) and non-bank corporates (-17.6% m/m) segments.
On the other hand, inflows from foreign sources (56.3% of total inflows) surged by 116.8% m/m to US$2.73 billion (May: US$1.26 billion) – the highest level in twenty-nine months – supported by increased market confidence and the moderation in global pressures.
As a result, the FPI (+133.6% m/m) segment recorded higher accretion, while inflows from other corporates (-39.8% m/m) and FDIs (-31.6% m/m) segments declined.
In the near term, market anticipates that foreign exchange inflows (particularly from FPIs) will continue to improve, supported by growing market confidence and elevated stop rates at OMO auctions.
However, the lingering global trade uncertainties remain a downside risk to inflows from foreign counterparts, potentially constraining growth in the overall liquidity of the NFEM.
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