The total turnover of forex transactions on the Investors and Exporters window stood at US$7.62 billion as at August 11, a report has shown.

The increase, according to the monthly analysis by FSDH Merchant Bank Limited, has been consistent since April 2017.

They projected that the turnover in August 2017 would also be higher than that of July 2017.

The report pointed out that the implementation of the Investors’ and Exporters’ Foreign Exchange (FX) window has increased the supply of foreign exchange into the Nigerian economy.

In addition, it has attracted more investments into Nigeria.

“Consequently, we observed relative stability in the foreign exchange market. Companies and individuals are now able to access more foreign exchange in the market than before to carry out eligible transactions and economic activities are gradually picking up,” they added.

The Central Bank of Nigeria (CBN) introduced the special window for investors, exporters and end-users of forex on April 21, 2017 as part of its efforts to deepen the forex market and accommodate all forex obligations.

According to the CBN, the objective of the window is to increase liquidity in the forex market and ensure timely execution and settlement of eligible transactions.

The eligible transactions in the window are: invisible transactions such as loan repayment, capital repatriation, management services fees, consultancy fees, software subscription, technology transfer agreements, personal home remittances and any other eligible invisible transactions.

Another one is the Bills for Collection as well as any other trade-related obligations (at the instance of the customers).

The CBN stipulates that the supply of foreign currency to the window shall be through portfolio investors, exporters, authorised dealers and other parties with foreign currency to exchange to naira.

The CBN is also a market participant in the window to promote liquidity and professional market conducts.

“The introduction of the window has encouraged exporters to bring back their export proceeds to the country and through the official sources, thus increasing the stock of foreign exchange in the country. “Another important gain of the window is that it has attracted more foreign capital into Nigeria for various forms of investment.

“Our analysis of the capital importation data from the CBN between January and May, 2017 shows that there was a growth in capital importation in 2017 compared with 2016.

“The total capital importation in the five months ended May 2017 stood at US$2.09 billion representing a growth of 82.78% compared with the US$1.42 billion recorded in the corresponding period of 2016,” it added.

According to the report, Other Investments (OI) – Loans attracted the highest capital of US$886 million between January and May in 2017, followed by Foreign Direct Investment (FDI) – Equity of US$436 million and closely followed by Foreign Portfolio Investment (FPI) – Equity of US$413 million.

The report also revealed that capital imported into Nigeria increased significantly from US$244 million in March to US$563 million in April 2017, following the commencement of the programme.

The increased supply of forex led to an appreciation in the value of the naira as in the parallel market, the value of the naira appreciated by 7.87 per cent from N396/US$ on April 25, 2017 to N367.50/US$ as at August 11, 2017.

At the I&E window, the naira gained 2.82% from N374.96/US$ on April 25, 2017 to N364.78/US$ as at August 11, 2017. In the inter-bank market it also gained 0.1 per cent from N305.9/US$ on April 25, 2017 to N305.65/US$ on August 11, 2017.

“Although we commend the initiative and note the gains the Nigerian economy recorded since its implementation, we believe that the gains could be short-lived in the absence of complementary measures that will improve the competitiveness of the Nigerian economy.

“There is the need for concerted efforts to improve physical and human infrastructure in order to increase local production to meet local consumption and boost exports to generate diversified foreign exchange earnings,” it stated.

CBN Governor, Mr. Godwin Emefiele, had told Arise TV that the I & E window was opened up for more and more people who are interested.

“That was why we introduced the I & E window. We said if you wanted forex, you can go to that market and buy it once it fits the pricing structure of the goods or whatever you want to do.

“And that has helped to some extent in complementing the flow of forex into the market and has resulted in the appreciation that we have seen. It is the market that determines the direction of the exchange rate,” he had said.

http://investorsking.com/forex-transactions-on-investors-exporters-window-hit-7-62bn/

OK
That's not too Bad of Nigeria


Check my signature

This will further aid second quarter FDI and boost economic activities of non-oil sector.

However, we need the CBN to lower policy rate to encourage local players participation in national building. All these foreign investors, like the MTN that transferred $13 billion illegally out of the country in 2016, will continue to take profit regardless of economic situation, leaving economic deficit/crisis that we will have to deal with continually.

We need people, investors, and businesses that can earn and spend in the economy.

Good one.

Great one

We are watching

Aba fabricated Jews, come ye forth and wail!

This is the kind of thread naysayers avoid

oubi:
We all know who is working the work

who cares? Is buhari's administration

oubi:
We all know who is working the work

Nigeria is working! That is all that matters to Nigerians. We know you are pained by this news but we don't care.

It is well with Naija

DonVikings:
Aba fabricated Jews, come ye forth and wail!

I don't think they understand the report, they would have flooded here with their Aba made stuff.
The only thing they understand here are "importers & exporters" but for the actual report, forget it.

That's to tell you majority of them (ipods) are illiterates and useless because they dont understand the importance of this news and the indices.

It seems BMC has added a new batch of online warriors. See them above! I can tell you that none of them has any business unless waiting to get paid by month end. But, they are always here to applaud mediocrity.

I dont even know what they are saying

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Oh

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Good

Truth234:
This will further aid second quarter FDI and boost economic activities of non-oil sector.

However, we need the CBN to lower policy rate to encourage local players participation in national building. All these foreign investors, like the MTN that transferred $13 billion illegally out of the country in 2016, will continue to take profit regardless of economic situation, leaving economic deficit/crisis that we will have to deal with continually.

We need people, investors, and businesses that can earn and spend in the economy.

It's even unfortunate that it's so easy to move money out of the economy by the investors.

It must be reasonably difficult to withdraw huge cash from the economy no matter the ease of doing business strategy/policy employed.

The recessive economy is now circumnavigating it's way through the waters of rebounds,

If the tempo can be sustained for the fourth quarter of fiscal year, then total recovery into mainstream fiscal stability will be attained by first quarter of next year


Lenders are beginning to gain investor confidence,
The policy somersault is now fizzling out,
Flexible window to an extent is paying off,

Now the government must endeavour to disallow external capital repatriation, at most a minimal Window, To allow for more expenditures within our confines.

Nairaland is fast becoming APC propaganda machine!

DonVikings:
Nigeria is working! That is all that matters to Nigerians. We know you are pained by this news but we don't care.

Working indeed! Continue celebrating mediocrity while other countries including Africans have all left you behind, very soon you will become a fourth world country!

Pls I need more info on how forex trade works.pls u can email me @isaacoglas@gmail.com

PassingShot:

It's even unfortunate that it's so easy to move money out of the economy by the investors.

It must be reasonably difficult to withdraw huge cash from the economy no matter the ease of doing business strategy/policy employed.

Everything is easy in Nigeria, even Kemi Adeosun said it's too easy to steal in Nigeria.

But I guess this transfer would be done via proxies.

Good news.

This is what we should celebrate and not fake news

Such a good move.

good story