Foreign investors contribute $822.6m to the economy

According to news reports, foreign investors have committed $822.6 million to the economy through the Nigerian Autonomous Foreign Exchange Market (NAFEM) window. A report by Afrinvest West Africa Limited at the weekend indicated that the foreign capital inflows represented year-to-date net inflows through the NAFEM window following CBN’s drive to attract foreign exchange. It said: “Across the FX market this week, the naira remained stable and traded within a similar band as the previous week. At the NAFEM Window, the activity level improved 41.4 percent ($473.1 million) to $421.6 million and the price currency (naira) fell 4.9 percent week-on-week against the base currency (dollar) to N1627.40/$1. Similarly, the price currency (naira) dipped 5.3 percent week-on-week against the base currency (dollar) to N1600/$1 at the parallel market. The analysts at Afrinvest noted that the spread between the NAFEM and parallel rates sustained its streak for the second week though the weekly average declined 98.8 per cent to N27.40. “In the week ahead, the Naira is likely to trade within a similar band across FX segments, supported by intensified regulatory spotlight,” they said.