SAT, NOV 04 2023-theGBJournal| The naira appreciated by 1.8% to N776.14/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM), with total turnover at the market (as of 02 November 2023) decreasing by 28.6% WTD to US$443.09 million, as trades were consummated within the N475.00 – N1101.00/USD band.
In the Forwards market, the naira rates recorded appreciation across the 1-month (+6.0% to N787.21/USD), 3-month (+6.2% to N801.43/USD), 6-month (+6.5% to N823.49/USD), and 1-year (+6.4% to N877.59/USD) contracts.
According to the data obtained from FMDQ, total inflows into the Nigerian Autonomous Foreign Exchange Market (NAFEM) declined by 6.2% m/m to USD1.23 billion in October after hitting a 3-month high in September (USD1.31 billion).
The breakdown provided shows that the decline was driven by lower inflows from local sources (87.1% of total inflows) despite improvement from foreign investors (12.9% of aggregate inflows).
Notably, inflows from local investors dipped by 14.6% m/m to USD1.07 billion in October (September: USD1.26 billion) amid significant declines in the CBN (-94.8% m/m), and Individuals (-99.0% m/m) inflows.
Inflows from foreign sources settled higher by 182.9% m/m to USD158.70 million, although still significantly below the pre-pandemic level (Q1-20 average: USD1.28 billion).
Meanwhile, Nigeria’s FX reserve increased for the fourth consecutive week as the gross reserve level advanced by USD60.15 million w/w to close at USD33.40 billion (31 October 2023).
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