FOREX: Turnover in I&E rises by 132% to $2.6bn

The volume of dollars traded (turnover) in the Investors and Exporters (I&E) window of the Nigerian foreign exchange (forex) market rose sharply by 132 per cent month-on-month (MoM) to $2.6 billion in May, 2021 from $1.12 billion in the preceding month of April.

Financial Vanguard analysis of daily transactions in the window as published by FMDQ showed that on a weekly basis, the turnover stood at $467.97 million in the first week of May. 

In the second week turnover fell by 29 per cent to $334.36 million from where it rose by 53 per cent to $511.37 million in the third week. 

The upward trend continued in the fourth week  as turnover rose sharply by 142 per cent to $1.24 billion despite   the official devaluation of the naira in the Nigerian Autonomous Foreign   Exchange (NAFEX) to N410 per dollar from N376 per dollar by the Central Bank of Nigeria, CBN, during the week.

However, turnover stood at  $100.77 million on the last day of the fifth week.

Meanwhile, the naira depreciated by N2 in the I&E window in May as the indicative exchange rate for the window rose to N412 per dollar on May 31st from N410 per dollar on 4th of May.

On the other hand, the nation’s external reserves fell by $639 million in May. Data from the CBN showed that the reserves fell to $34.242 billion on May 31st from $34.881 billion at the end of April 30th. Overall, the reserves have fallen by $950 million since the beginning of the year.