Nigeria's FX Market Sees $2.80bn Inflow in August, Strong Local Participation

Nigeria's Foreign Exchange Market (NFEM) saw a total inflow of $2.80 billion in August, with local participation remaining strong despite a moderation in foreign investor activity. Data from FMDQ revealed that foreign inflow accounted for 38% ($1.06 billion) of the total, while domestic sources contributed 62% ($1.74 billion).

Analysts from Cordros Securities predict a continued firmness in foreign exchange inflow from both local and offshore sources in the near term. The total inflow in August decreased by 3% compared to July, with foreign inflow dropping to $1.06 billion due to weaker participation by Foreign Portfolio Investors (FPIs) and Foreign Direct Investments (FDIs).

This data reflects the evolving dynamics of Nigeria's FX market.