SAT SEPT 07 2024-theGBJournal|The naira remained resilient against the greenback, appreciating by 0.3% w/w to N1,593.32/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
This is despite the total NAFEM turnover declining by 24.5% WTD to USD764.61 billion (as of 05 September), with trades consummated within the N1,400.00/USD – N1,650.00/USD range.
In the forwards market, the naira rates recorded on the 1-month (-2.3% to N1,660.59/USD), 3-month (-3.7% to N1,733.99/USD), 6-month (-5.0% to N1,843.32/USD) and 1-year (-8.2% to N2,074.04/USD) contracts decreased.
Based on the data obtained from FMDQ, total inflows into the Nigerian Autonomous Foreign Exchange Market (NAFEM) rose by 21.4% m/m to USD2.34 billion in August (July: USD1.92 billion).
Analysing the breakdown, inflows from local sources increased by 15.5% m/m to USD1.94 billion in August (July: USD1.68 billion) driven by increased collections from Individuals (+162.5% m/m), Exporters (+28.3% m/m), and Non-Bank Corporates (+18.7% m/m) segments despite the weaker inflow from the CBN segment (-53.7% m/m).
At the same time, inflows from foreign sources increased by 62.1% m/m to USD394.50 million (July: USD243.30 million), although remained below the H1-24 average (USD790.57 million), reflecting still weak foreign investor confidence.
Meanwhile, Nigeria’s FX reserves decreased by USD1.03 million w/w to USD36.30 billion (04 September), marking the 5th consecutive week of depletion.
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