By Elizabeth Adegbesan
THE volume of US dollars traded (turnover) in the Investors and Exporters (I&E) window of the foreign exchange market dropped to $11.4 billion in the third quarter of 2019 (Q319).
Financial Vanguard analysis of daily transactions in the window as published by FMDQ Securities Exchange Plc showed a quarter-on-quarter, Q-o-Q, decline of four percent to $11.4 billion in Q3’19 from $11.9 billion in the preceding quarter, Q2’19.
This is the second consecutive quarterly decline recorded in the window since inception three years ago. The window recorded 33 percent decline in turnover in Q2’19 to $11.9 billion from $17.72 billion in Q1’19.
On monthly basis, turnover in the I&E window dropped by 41 percent to $4.4 billion in September from $7 billion in August 2019.
Monthly turnover in the window dropped by 33 percent to $3.2 billion in June from where it rose by 45 percent to $4 billion in July and up by 75 percent to $7 billion in August, courtesy of dollar sales by the Central Bank of Nigeria (CBN) to meet demand from foreign portfolio investors (FPIs) exiting the nations fixed income market.
Financial Vanguard analysis of weekly turnover in the window for September showed that $1.22 billion was traded in the first week of September. Turnover dropped by two percent to $1.2 billion in the second week and down by 13 percent to $1.05 billion in the third week. The turnover further dropped in the fourth week by 92 percent to $894.3 million.
However, the naira appreciated by 50 kobo in the I&E window in September as the indicative exchange rate for the window dropped to N362.23 per dollar on September 30th from N360.73 per dollar on 2nd of September.