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Tinubu’s Naira unification yields result as forex inflows surge to $2.55 billion

Following the naira's unification 2 months ago, the Central Bank of Nigeria announced that foreign exchange (FX) inflows into the nation increased to $2.55 billion in the period under review.
CBN urged to stop providing forex at official rate for Nigerian students abroad
CBN urged to stop providing forex at official rate for Nigerian students abroad

Following the naira's unification 2 months ago, the Central Bank of Nigeria (CBN) announced that foreign exchange (FX) inflows into the nation increased to $2.55 billion in the period under review. 

The overall inflows through the Investors and Exporters (I&E) window rose to $1.41 billion in June from $1.14 billion in May, according to figures from the apex bank, marking a second consecutive month of growth, as reported by Nigerian business news publication, Nairametrics.

The bank highlighted that exporters and businesses contributed to the inflows in June. In an effort to increase liquidity and stability, the Central Bank of Nigeria (CBN) announced in June that all forex market sectors will be combined into a single window. 

Different groups throughout the nation have responded differently to the unification of currency rates. Companies have recently published their Q2 financial accounts, and despite increased sales, the majority of them suffered pre-tax losses owing to foreign exchange revaluation losses. 

As Nigeria adjusts to the elimination of gasoline subsidies, the price of petrol has increased with the naira unification to N640/ltr. Even though the naira is still falling versus the dollar, analysts think that over the long and medium term, exchange rate unification would boost FX liquidity. Some analysts think that the naira float will attract investment to other areas of the economy. 

On Thursday, August 10, 2023, the naira plunged to another record low of N930/$1, as demand for dollars from importers and other end users vastly outstrips supply.  

As they continue to bemoan the lack of dollars in the face of increased demand, operators who talked with Nairametrics cited prices as high as N930/$1 as opposed to the N910/$1 that was quoted on Wednesday. 

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