Foreign exchange inflows into Nigeria rose by 24 percent in July, reaching 3.8 billion dollars, according to data from FMDQ. The increase was driven by stronger contributions from non-bank corporates, which overtook foreign portfolio investors as the largest source of supply for two consecutive weeks.
A report by FBNQuest showed inflows were up from 3.1 billion dollars in June but remained well below the 6.7 billion dollar peak recorded in May, reflecting continued volatility in liquidity. Offshore portfolio investors still accounted for the largest share overall, contributing 45 percent of July’s total inflows, with 1.7 billion dollars recorded.
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Coronation Merchant Bank data revealed that in one week, non-bank corporates supplied 227.4 million dollars, more than exporters, the Central Bank of Nigeria and foreign portfolio investors. The rise in corporate inflows, which climbed to 1.2 billion dollars in July, was linked to improved export earnings and repatriated oil profits.
Despite stronger reserves, the naira weakened slightly in July, closing at 1,534 to the dollar, while reserves rose by over 430 million dollars to 40.7 billion.
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