The Nigeria Autonomous Foreign Exchange (NAFEX) window also known as Importers and Exporters (I&E) window has since its inception in April last year seen an inflow of $37.5 billion as analysts and players in the market say they expect the inflow to remain steady before political activities commence. The NAFEX also known as the Investors’ and Exporters’ window was introduced by the Central Bank of Nigeria (CBN) in the height of the foreign exchange crisis as anyway to increase forex inflow and help converge rates. Seen as one of the successes of the CBN, the I&E window according to analyst and traders in the forex market has brought more transparency to the market which uses a market determined rate.
This year alone, the I&E window has seen close to $10 billion inflow as weekly average trade on the window has been around $1 billion in recent times. According to the chief executive and managing director of Cowry Assets Management Limited, Johnson Chukwu, the rising level of the foreign reserves of the country is also a contributory factor to the growing confidence in the country that has led to the steady inflow of forex on the window.
The external reserves of the country has so far risen to $46 billion according to figures given by the CBN earlier in the week. Data released by the Financial Market Dealers Quotations (FMDQ) show that total value traded at the I&E forex Window in January 2018 settled at $5.25 billion, an increase of 36.87 per cent or $1.41 billion compared to the $3.87 billion value recorded in December 2017. The inflow however dropped in February by 25.71 per cent $3.90 billion, bringing the total value traded at the Window in the first two months to $9.15 billion.