Investor & Exporter window reports $53.02m turnover after forex ban lift

The Investor & Exporter forex window experienced a turnover of $53.02 million on Friday, following the Central Bank of Nigeria’s decision to lift the forex ban on 43 items.

The CBN, in a statement titled ‘CBN Restates Commitment to Boost Liquidity in Forex Market’ signed by the Director of Corporate Communications, Isa AbdulMumin, disclosed the lift of the ban on Thursday.

“Importers of all the 43 items previously restricted by the 2015 circular referenced TED/FEM/FPC/GEN/01/010, and its addendums are now allowed to purchase foreign exchange in the Nigerian foreign exchange market,” the statement mentioned.

Data obtained from the FMDQ on Friday indicated that there was no improvement in turnover on the official trading platform, with a recorded turnover of $53.02 million compared to $60.30 million on Tuesday.

However, the naira experienced a slight appreciation, exchanging at 764.86/$ compared to 766.70/$ on Thursday.

In a report by analysts at Cordros Securities, they mentioned, “In our view, while this is another step forward, we think FX liquidity should take prominence to avoid further FX pressures at the official and parallel markets, more so that the FX queue will now be longer at the official market without liquidity.”

“Perhaps this is a signaling tool by the CBN to shift attention away from the parallel market and reduce the pressure of the official market playing a catch-up game with the unofficial exchange rate.”

“Hence, in terms of impact, we think FX pressures will increase in the official market in the near term, while the parallel market rate is likely to appreciate as the importers of these 43 items move to the official market.”