In Two Years, Nigeria Records $35bn Autonomous Inflows
In two years, Nigeria recorded an autonomous inflow of $35bn through the Investors’ & Exporters’ FX Window, the Central Bank of Nigeria said.
The CBN stated, “Since the establishment of the I&E Window in April 2017, we have recorded about $35bn in autonomous inflows through this window alone.
“As a result, exchange rate pressures eased considerably across all markets as the rates converged to about N360/$ and the distortive premium almost eliminated.
“At the BDC segment, we saw a significant appreciation of the Naira from over N525/$ in February 2017 to about N360/$ today. Rates at the I&E window also appreciated from nearly N382/$ in May 2017 to just over N360/$.
“In addition, exchange rate pressures normally witnessed during the general election cycles appeared to have abated in February 2019, as the exchange rate remained stable at N360/$ during and after the general elections.
“This stability in the exchange rate reflects improved confidence in the naira by investors and the general public.”
The Association of Bureaux De Change Operators of Nigeria had earlier said that its strategic partnership with the CBN on foreign exchange supplies and sustenance of market integrity helped naira stability.
aABCON stated that the apex bank and ABCON worked together to achieve exchange rate stability.
It stated that the partnership between both institutions would continue to make naira sovereign in the forex market.
The association stated, “The strategic partnership between the Central Bank and ABCON continued to make the naira sovereign in the foreign exchange market. The opening market rate N360/361 to dollar on the two-way quote has been stable.
“This sustained stability made the Bureaux De Change to continue to be the potent monetary policy tool of the CBN exchange rate managements.”
According to the ABCON, the market distortions by forex speculators, rent seekers, currency hoarders and frivolous demand that usually endangered naira stability has been successfully checkmated.