Naira holds firm, trades below N1000/$ at parallel market

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Total inflows into the Nigerian Autonomous Foreign Exchange Market declined by 6.2 per cent month-on-month to $1.23 billion in October after it pivoted from a three-month high of $1.31 billion the preceding month.Total inflows into the Nigerian Autonomous Foreign Exchange Market declined by 6.2 per cent month-on-month to $1.23 billion in October after it pivoted from a three-month high of $1.31 billion the preceding month.

The CBN, on Thursday, reportedly commenced the payment of outstanding FX commitments with CitiBank, Stanbic IBTC and Standard Chartered Bank, the biggest players in FX business, said to have been credited. The overdue forward contracts were estimated at $6.7 billion. Meanwhile, inflows from foreign sources settled higher by 182.9 per cent m/m to $158.7 million, although still significantly below the pre-pandemic average of $1.28 billion.

FGN fixed income listings consist of FGN Bonds, FGN Savings Bonds and Sukuk bonds. This amounted to N6.08 trillion YTD. Also, the exchange admitted VFD Group and Nigeria Infrastructure Debt Fund at market capitalisations of N46.5 billion and N92.54 billion respectively, in October representing the major equity listings on NGX in 2023.

The financial services industry led the activity chart with 1.5 billion shares valued at N21.1 billion traded in 16,671 deals; thus contributing 60.4.pwe cent to the total equity turnover volume. “Thus, we see scope for the bulls to maintain dominance, though the magnitude of the gains may be lower, as profit takers are likely to book profits.

If you look at the projections in terms of growth, they talk about a need – a need to provide solutions. So, we are prepared to take advantage and leverage the need that already exists in the market. Nigeria’s underperformance in terms of innovativeness in the global space has been linked to low investment in research and development coupled with a lack of infrastructure needed to develop new products and services.

 

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