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All downloads listed here were purchased by floodle. But, in dramatic turn of events, the acute shortage of foreign exchange, which businesses and individuals grappled with, has turned to surplus of dollars in the market with banks now desperately looking for forex buyers. THEY wound up their operations and relocated to more investment-friendly environment. No thanks to the crash in crude oil prices that resulted in the depreciation of the Naira. But, barely a year after their exit, the foreign investors are returning to the Nigerian market. The window, which offers investors the opportunity to sell dollars at rates of their choice provided they find willing buyers, has restored confidence to the forex market. 20 billion into the market, enhanced transparency and made forex available to the end-users.
The operations of companies, especially manufacturing, has been on the upward swing with an improvement in inflation figures as well as equities market performance. In April last year, the CBN opened a special forex window for investors and exporters. There was also rising inflation, which peaked at almost 19 per cent in January 2017 and a persistently rising unemployment rate to 14. 23 per cent in 2016 fourth quarter from 6. 41 per cent as at 2014 fourth quarter.
E forex window was arguably the most important policy implemented by the CBN in 2017. Prior to this, investors were of the view that the naira was overvalued and not at a market-determined level. E FX window, higher oil prices and production, and the CBN’s consistent intervention in the forex market are the main drivers of the stability and the convergence of exchange rates in Nigeria today. The Global Markets Group Head at Access Bank Plc, Dapo Olagunju, said the window allows investors to sell dollars at any rate they choose and is expected to help bring investors’ confidence into the market. Exporters FX Window helps participants execute deals as based on their own market agreement. Today, both the dollar demand and supply sides are beginning to talk to each other and there is likely to be rate convergence soon.
Fragile Recovery, Positive Outlook’, said that Nigeria’s forex regime, although still far from ideal, has begun to stabilise. 20 billion in cumulative transactions since its introduction. Any measure that increases the supply of forex and the number of suppliers will help to reduce the dominance of the CBN as the major supplier of forex in the market and move us closer to the emergence of a Real Effective Exchange Rate. This will attract more investors and lead us closer to a perfect market. E Forex window had led to an improvement in banks’ forex liquidity situation.
9 billion, a report by Exotic Capital, an investment and research firm, has said. 23 billion in October 2016 and the economy continued to attract huge investment inflows from foreign investors. E window since inception in April 2017. We should stress that the data are gross and mask the swap transactions the CBN has entered into with local banks. The steady bid by the CBN has been seen variously as a response to the softening of demand for forex by importers and other economic actors, and as a move to contain naira appreciation. Speaking on the issue, CBN’s Acting Director, Corporate Communications, Isaac Okorafor, reiterated the bank’s commitment to ensure adequate forex supply to genuine customers to achieve the goal of forex rates convergence.
Managing Director, Afrinvest West Africa Plc, Ike Chioke, said the window has won the confidence of foreign investors. He said the window attracted foreign investors’ appetite for Nigerian assets leading to impressive appreciation in the equities market and stabilising the naira. Before the introduction of the window, foreign investors’ appetite for local assets waned significantly on the back of currency crisis which in turn fundamentally weakened macroeconomic performance, dragged corporate earnings and also impacted on equities market viability. According to the CBN, forex supply to the window shall be through portfolio investors, exporters, authorised dealers and other parties with foreign currency to exchange to naira.
The apex bank is a market participant at the window to promote liquidity and professional market conduct. The apex bank assured that the exchange rates of the transactions would be as agreed between authorised dealers and their counterparties. The regulator also reserved the right to intervene as a buyer or seller, as it deems fit, in the window, even as information on transactions between authorized dealers is reported to the CBN on a daily basis. The improved access forex by local manufacturers is positively impacting on the economy as the manufacturing sector, which was in comatose for nearly two years, has been upbeat in the last three months.
CBN has continued to show improvements in business and investment sentiment. On some of the stabilisation steps taken by the regulator, CBN Governor Godwin Emefiele said the apex bank has opened the market up for more people to come in. We want a forex market that will be determined by demand and supply. It has helped in forex flow and led to the appreciation in the naira we are seeing today. The Global Markets Group Head at Access Bank Plc, Dapo Olagunju, said the new window allows investors to sell dollars at any rate they chose and that it is expected to restore investors’ confidence into the market. Exporters FX window help participants execute deals as based on their own market agreement.