As reported by Business Day, according to data obtained from the FMDQ Securities Exchange. the Central Bank of Nigeria sold $575m in May which exceeds February’s $392 million, March’s $189m, and April’s $151m in April. Regardless, the CBN’s sales contributed for barely 6.6% of overall market turnover in May.
Foreign investors are becoming more wary of Nigeria’s foreign currency market due to the country’s persistent inflation and unstable exchange rate. In addition, repatriation risks are a worry for foreign investors, who would rather travel to Egypt, Turkey, or Pakistan than Nigeria.
According to FMDQ statistics, the turnover for the first thirty days of May is down 35% from the $9.12 billion transacted in April and 53% from the $12.6 billion turnover in March.
According to FMDQ data, the turnover for the first 30 days of May was 35% lower than the $9.12 billion exchanged in April and 53% lower than the $12.6 billion transacted in March.
According to Tellimer Ltd. statistics, as seen in the Business Day report, investor inflows into the currency market dropped by over 20% in April to a daily average of $200 million, then dropped even lower to $180 million in the first three weeks of May.
Foreign portfolio inflows into the stock market were N42.58 billion in April, down from N52.66 billion in March.
The currency is expected to stabilize between N1350 to N1450 in the next 12 months, according to the Chief executive officer of Lagos-based consulting firm, Financial Derivatives Company. Bismarck Rewane, the Nigerian currency is expected to stabilize between N1350 to N1450 in the next 12 months
