The Investors & Exporters (I & E FX) FX window as at close of 2017 recorded a whopping total transactions’ turnover of $25.65 billion in just nine months of operations in 2017, according to reports. Due to low investors’ confidence and foreign exchange scarcity in 2017, the Central Bank of Nigeria (CBN) in a bid to ease the challenges faced by Nigerians in April last year created the I & E FX window.
In fact, data obtained from FMDQ OTC securities Exchange revealed that $0.61bn or N1865.66bn total turnover was traded in April; and increased by 114 percent to $1.32bn or N403.92bn in May. Total turnover on the I & E FX window in June and July were $1.63bn or N498.78bn and $bn1.86bn or N569.16bn, respectively.
Data from FMDQ OTC stated that total turnover gained momentum in August 2017, as newly created window reached $3bn per month. According to the data, I & E FX window in August was estimated at $3.54bn or N1.08trn, while in September, total trade on the I & E FX window closed at $4.61bn or N1.4trn. For October, it dropped to $4.30bn or N1.32trn.
In addition, the total turnover trade on the I & E FX window in November and December were $4.51bn or N1.38trn and $3.27bn or N1tn, respectively. The I& E FX was created by the CBN to boost supply of foreign exchange into the nation’s economy, attract more investments and stabilize the foreign exchange market.
The CBN introduced the special window for investors, exporters and end-users of foreign exchange on April 21, 2017, as part of its efforts to deepen the FX market and accommodate all the foreign exchange obligations.
Meanwhile, the CBN, also, in order to ease the difficulties encountered by Nigerians in obtaining funds for Foreign Exchange transactions, has commenced additional foreign exchange (FX) funding to commercial banks to meet customers’ Business Travel and personal, Medical, and School fees demands.
To this end, the apex bank has addressed the needs of parents, guardians and sponsors who are seeking to make payments of school and educational fees for their children and wards.
The Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, in a statement had said such retail transactions are expected to be settled at a rate not exceeding 20 percent above the interbank market rate.
He explained that the CBN would meet the needs of parents, guardians and sponsors who are seeking to make payments of school and educational fees for their children and wards.
“Such payments must be made by commercial banks directly to the institution specified by the customer. The CBN would ensure that this process is as smooth as possible and that as many customers as possible get the foreign exchange they genuinely demand.
“This would also apply to customers seeking to make payments or purchase foreign exchange, for medical bills and paid directly to hospitals. The supply of FX to retail end-users (PTA, BTA, School fees, medical bills, etc) would be sustained by the CBN,” he added.
