Total inflows into the Nigerian Autonomous Foreign Exchange Market (NAFEM) declined by 6.2 per cent month-on-month (MoM) to $1.23 billion in October after it pivoted from a three-month high of $1.31 billion the preceding month
But on the positive side, naira continues to hold steady against its peers, trading around N1000 to a dollar at the weekend. In Abuja and Lagos markets, most traders were quoting N950/$ for buying and N1050/$ for selling at the weekend.
Overall, sentiments remain positive and strong for naira even as some market operators believe the sharp naira appreciation that followed the Central Bank of Nigeria’s (CBN) commencement of settlement of matured foreign exchange (FX) forwards was the beginning of a new era.
In the short to medium-term, according to analysts, the outlook of the local currency is bullish. This new confidence has kept speculators at bay with many dealers accumulating cautiously.
The CBN, on Thursday, reportedly commenced the payment of outstanding FX commitments with CitiBank, Stanbic IBTC and Standard Chartered Bank, the biggest players in FX business, said to have been credited. The overdue forward contracts were estimated at $6.7 billion.