The Central Bank of Nigeria has revealed a substantial increase in foreign exchange (FX) inflows, soaring to $2.55 billion over two months after the unification of the naira. This positive trend is evident in the Investor and Exporter (I&E) window, which experienced consecutive monthly growth. In June, the inflow of $1.41 billion marked an upswing from May’s $1.14 billion.
The June inflows were primarily attributed to contributions from businesses and exporters. This surge follows the Central Bank of Nigeria’s move to merge various forex market segments into one unified system, a decision aimed at enhancing liquidity and stability.
Responses to this exchange rate unification have varied across different sectors. Notably, recent corporate Q2 financial reports displayed pre-tax losses due to foreign exchange revaluation losses, despite improved revenues.
The unification of the naira has also influenced fuel prices, resulting in an increase to N640 per liter, as Nigeria grapples with the removal of fuel subsidies.
Despite the naira’s downward trajectory against the dollar, experts remain optimistic about the long-term benefits of exchange rate unification. This shift is anticipated to bolster FX liquidity in the medium and extended periods and attract investment across diverse sectors of the economy.
Meanwhile, the parallel market witnessed the naira plummet to a new low of N930/$1 on August 10, 2023, reflecting heightened demand for dollars from importers and other users, surpassing the available supply.