SAT, JAN 13 2024-theGBJournal|The naira value fell by 2.4% to N890.54/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM), with total turnover in the market (as of 10 January 2024) increasing by 29.4% WTD to USD457.45 million, as trades were consummated within the N475.00 – N1,289.00/USD band.
In the Forwards market, naira rates depreciated across the 1-month (-7.8% to NGN983.89/USD), 3-month (-7.5% to N1,005.14/USD), 6-month (-7.2% to N1,039.12/USD), and 1-year (-6.8% to N1,114.08/USD) contracts.
Data obtained from FMDQ also showed that total inflows into the Nigerian Autonomous Foreign Exchange Market (NAFEM) declined by 4.0% m/m to USD1.37 billion in December (November: USD1.43 billion).
The breakdown provided showed a broad-based decline across the local (82.7% of total inflows) and foreign sources (17.3%).
Expressly, local inflows declined by 2.6% m/m to USD1.13 billion (November: USD1.16 billion), primarily due to weaker inflows from Exporters (-15.4% m/m) amid substantial increases in Individuals’ inflows (+1678.6% m/m).
Similarly, inflows from foreign sources remained underwhelming, declining further by 9.9% m/m to USD237.10 million (November: USD263.20 million) as foreign investors remained cautious about returning in droves following Nigeria’s FX market inadequacies.
Overall, the total inflow into the NAFEM window averaged USD1.17 billion in 2023FY (2022FY: USD1.24 billion).
Meanwhile, Nigeria’s FX reserves maintained its upward trend this week, increasing by USD49.07 million w/w to close at USD33.09 billion (11 January 2024).
Following FX swaps and the reversal of OMO winnings by the Apex bank, system liquidity stood at N186.43 billion.
W-on-W, the Open Buy Back (OBB) rate rose 233bps to 16.58% while the Overnight (OVN) rate increased by 290bps to print at 17.80%.
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