FOREX: Turnover in I&E falls by 47% to $33bn in 2020

By Elizabeth Adegbesan

MONEY MARKET

The volume of dollars traded (turnover) in the Investors and Exporters (I&E) window of the Nigerian foreign exchange (forex) market fell  by 47 percent, year-on-year (YoY) to $33.04 billion last year from $62.37 billion in 2019.

This suggests a decline in dollar inflow from Foreign Portfolio Investors (FPIs) during the period.

Data obtained by Vanguard on monthly turnover in the I&E window shows that the year started on a decline as turnover dropped by six percent in January 2020 to $5.6 billion from $5.3 billion in December 2019.

Subsequently, a trend of fluctuation began month-on-month till December though the volume on decline outweighed the upticks.

Meanwhile, data also show that Naira depreciated by N20 in the year as the indicative exchange rate of the window closed the year at N410.25 per dollar on 31st of December as against the year’s opening rate of N390.25 per dollar in January 2020.

Vanguard analysis of weekly turnover in the window shows that $229.14 million was traded in the first week of December. Turnover rose by 273 percent to $855.15 million in the second week and down by 51 percent to $420.82 million in the third week.

The turnover rose in the fourth week by 78 percent to $747.27 million and down by 29 percent to $529.75 million in the last three days of the fifth week of December.

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