RISING dollar inflows through the Investors’ and Exporters’ (I&E) Forex Window and foreign reserves accretion have stabilised the naira in the official and parallel markets.

The I&E Forex Window has attracted $48 billion to the economy in 24 months, the Central Bank of Nigeria (CBN) showed in its updated report on the dollar inflows.

The report also showed that foreign reserves have risen to $45 billion.

With improved availability of foreign exchange, the exchange rate at the I&E Forex window has remained stable over the past two years at an average of N360/$, and the parallel market exchange rate has appreciated from N525/$ in February 2017 to N360/$ at present.

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 and boosted the foreign exchange reserves.

Not many investors – local and international – gave the I&E Forex window any chance to succeed when it was introduced.

But today, it is seen as one of the key instruments expected to help stabilise the local currency against other currencies.

Prior to the introduction of the I&E Forex window in April 2017 by the CBN, the market and exchange rates were in turmoil. But, in a dramatic turn of events, the acute shortage of forex, which businesses and individuals grappled with, improved, with banks and Bureaux de Change (BDCs) now desperately looking for forex buyers.

CBN Governor Godwin Emefiele said the introduction of the window, along with improvement in domestic production of goods have helped shore up the external reserves.

“Transactions have reached over $48 billion since the inception of the window and our foreign exchange reserves has risen to $45 billion in April 2019 from $23 billion in October 2016. Nigeria’s current stock of external reserves is now able to finance over nine months of current import commitments,” the report said.

The report said although the level of reserves was still below the record high of $64 billion realised in August 2008, it is nearly double the $24 billion recorded in October 2016, increasing by more than $21 billion with current standing.

It went on: “In April 2017, we introduced an Investors and Exporters (I&E) window, which allowed investors and exporters to purchase and sell foreign exchange at the prevailing market rate.

“In addition, exchange rate management was further liberalized following the operationalisation of the “Revised Guidelines for the Operation of the Nigerian Inter-bank Foreign Exchange Market in June 2016.”

According to the report, the commencement of this policy guideline introduced the Naira Settled Foreign Exchange Futures Market.

The dollar inflows have also led to an improvement in manufacturing index.

Activities in the industrial sector witnessed significant improvement between August 2016 and February this year, as the Primary Manufacturing Index (PMI) rose from a low of 42 per cent in August 2016 to 57 per cent in April.

The development was attributed to sustained supply of forex and the dogged implementation of CBN’s forex restriction on certain items.

Analysts have predicted that the local currency will remain stable at the official and parallel markets, with the rise in foreign reserves.

They insist that even with oil prices above $50/barrel and the look-good state of the foreign reserves, the outlook on exchange rate still remains positive. They said the apex bank will continue to support the naira through consistent dollar injections.

Also, given the apex bank’s unconventional forex and development finance policies, the economy has recorded spectacular improvements in domestic production of most of the targeted items. Local manufacturers are consequently reporting major boosts to their revenue and profit.

As a result of the implementation of a tighter monetary policy regime, intervention programs in the agriculture and industrial sectors, as well as improved forex inflows, inflation began to decline, from its peak of 18.7 per cent in January 2017. It currently stands at 11.37 per cent as at April.

https://thenationonlineng.net/48b-forex-inflows-45b-reserves-stabilise-naira/amp/

You have done well, but try and take it to the rate it was before the inception of this government.



First to comment..

So is it going to be stable at 360/$ forever? No more appreciation?

Ok

How come we still have the dollar at N365?

Hmmmm

..

[img]https://i./3NpLR.gif[/img]

Oga Emefiele is proving a point there.

After majority of us in one way or the other contributed to the bad state of the economy
We would now be looking for surbodinate to lean on.... them after leaning on forex it Forex should fold up which no one can ever predict.....
What next perhaps we would never stop borrowing and leaning....
The solution is to fix from the inside and then aoutomatically the outside would fix itself.
Everyone is just fighting for their own pocket
Err body nah Hypocrite jarey

Bubu is working. PDP goats are not getting yams to chop. At the state level both PDP and APC goats are eating yams. That is why they owe workers salaries and pensions

If not for PMB and this APC government, Nigeria would have been auctioned on OLX going by what the thieving gang left behind.

SillyMods:
If not for PMB and this APC government, Nigeria would have been auctioned on OLX going by what the thieving gang left behind.

PDP and Reno Omokri were warming up to put the country on OLX and then relocate to America like 90% of NL

The two of u above...shut the fuçk up!!!

let us know when dollars come down to below N200, that is when we can understand all this gibberish.

OTayobami:
So is it going to be stable at 360/$ forever? No more appreciation?

Check the source of the news to know that it is as fake as Tinubu’s yellow teeth

seguno2:


Check the source of the news to know that it is as fake as Tinubu’s yellow teeth

Guy chill now ahn! Ahn!

Money wey no reach one man money dey stabilize a ehole country

Esseite:
How come we still have the dollar at N365?

The APC choristers can’t and won’t ask such a reasonable question.
Maybe they all are semiliterate without a certificate like their Oga @ the top

Am waiting for #1 to $1

Inflow from wire wire.

Todays exchange is still $1 = N365

Which Kain lie bi dis. Even with the so intervention the dollar never drop from the 360 forget the price of 500 dat one can cabal doing.

Ok, good news, so our naira won't continue to crash, ok we need good policies to help our economy grow so our currency can be strong again

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Dootty:
Which Kain lie bi dis. Even with the so intervention the dollar never drop from the 360 forget the price of 500 dat one can cabal doing.

The watchword is stability.

What have you done to strengthen the Naira other than demand more and more foreign made goods?

Mcheeww... I thought dollar is now N200 naira

permit:
Am waiting for #1 to $1

keep waiting! They say,"what goes up must come down". In Nigeria, it is highly non-existence. What goes up, keeps going up and RARELY comes down. But dont worry #1 will be $1 when God destroy everybody

This rate can still come down. An import dependent country like Nigeria needs a low and stable exchange rate to cub inflation.

If the exchange rate comes down definitely prices of goods and services would come down.

permit:
Am waiting for #1 to $1

Waiting for what is not achievable?

Sai baba