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I&E Forex Window Attracts $4b in Three Months

By ThisDay

Bankers’ Committee on Thursday disclosed that the importers’ and exporters’ (I&E) foreign exchange window introduced by the Central Bank of Nigeria (CBN) about four months ago has attracted about $4 billion from foreign investors between April and August 2017.

Addressing newsmen in Abuja at the end of its 34th meeting, the committee disclosed that this is a $1.8 billion growth over the $2.2 billion recorded in June.

The window also posted a single transaction of $240 million on August 1, 2017.

The Director, Banking Supervision of the CBN, Mr Ahmed Abdullahi; Managing Director, Union Bank of Nigeria Plc, Mr Emeka Emuwa; Managing Director, FSDH, Mrs Hamba Amba; and Executive Director, Standard Chartered Bank, Mrs Mobola Faleye, who addressed the media, noted that the economy was on the recovery path and on the verge of exiting the recession, going by various indicators.

The committee further said that the forex market has continued to record positive gains, with the various exchange rates in the market nearing convergence.

Speaking on the I&E window, Mrs Amba recalled that the CBN set up the window in April, adding: “And it was very interesting that when we were going through the meeting today (Thursday), the fact was given to us that so far the volume of the trading that had gone on in that window was about $4 billion and that is quite a good number.”

“It shows that the banks have done a lot of rallying. It shows that the banks have been resilient. It shows that the banks have contributed largely in bringing in FDIs as much as possible into the market.

“In fact, there was a single ticket that was done on August 1, a transaction of $240 million. So we think that things will be looking up and we are quite hopeful that things are going in the right direction,” the FSDH chief executive stated.

She added that one of the areas that had also given the committee cause for optimism on the economy was the Purchasing Managers’ Index (PMI), which has consistently been over 50 in recent months.

“The Purchasing Managers’ Index is an indicator of the economic health of the manufacturing sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries, and the employment environment month after.

“And most of these indicators have trended up in recent months, indicating that the economy is on the path of recovery and will exit the recession soon,” she said.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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