Foreign exchange (Forex) inflows through the investors and exporters (I&E) window rose month-on-month by 23 percent to $1.41 billion in June from $1.14 billion in May 2023.
The Central Bank of Nigeria, CBN, disclosed this yesterday in its July 2023 update curved report.
The apex bank stated: “The total inflows into the I&E window rose to $2.55 billion in the months of May and June following the unification of exchange rates by the Central Bank of Nigeria.
“The data indicated that inflows into the I&E window increased for the second consecutive month in June to $1.41 billion from $1.14 billion in May.
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“However, local inflow continued to sustain the market, hitting $1.11 billion in June because of higher inflows from non-bank corporates ($597.10 million) and exporters ($448 million).
“According to experts, the development in the FX market was expected to translate to improvements in FX liquidity conditions over the medium term as market participants.”
This is coming after the apex bank removed the multiple exchange rate system in the forex markets.
Recall that CBN lifted restrictions on foreign exchange trading in June which has seen the naira depreciate against the dollar during the period.
The country has been plunged into dollar shortages after foreign investors exited local assets in the wake of low oil prices.
As a result of the shortages, some businesses and individuals have turned to the unofficial black market, where the currency is trading weaker, thereby widening the gap with the official rate.
