Investors and Exporters Forex Window Attracts $11.2b

By Modupe Gbadeyanka

The Investors and Exporters (I&E) Forex window put in place by the Central Bank of Nigeria (CBN) has attracted about $11.2 billion as at September 15, 2017.

This is according to a report released by FBN Capital, the investment and research arm of FBN Holdings Plc.

“The pick-up in oil production has been an obvious positive for accumulation. Officials are encouraging the view that it is back at, or close to the 2.0 million barrels per day level.

“Further, the FGN may well return to the Eurobond market this year. The heavily-oversubscribed Iraqi sovereign issue last month without US guarantees was a reminder of the strength of the market,” the report said.

At the moment, Nigeria’s foreign reserves stands at $33 billion, according to spokesman of the apex bank, Mr Isaac Okorafor, and it is expected to cover 8.1 months imports, when imports of services are added.

FBN Capital pointed out that, “On the basis of the balance of payments for 2016, reserves at end-August provided 10.8 months’ merchandise import cover. When we add imports of services, the cover is still 8.1 months.”

The report explained that the central bank will also be boosted by the signals from the I&E window, where turnover has continued to soar since it was launched in April 21.

The positive performance at the window has also been attributed to CBN’s policies, especially its instruction to banks and other authorised dealers to implement electronic Certificate of Capital Importation (eCCI) for foreign investors.

The Certificate of Capital Importation is given to foreign investors to confirm the level of investment they have brought into the country. The certificate has always been on hard copy until this policy shift.

The eCCI implementation, which has taken effect, is expected to boost transparency and enhance confidence of foreign investors in the local market. The foreign investors constitute about 70 per cent of the total transaction turnover in the capital market.

The eCCI would enable foreign investors to easily find out the status of their investments in the country, increase transaction efficiency and ensure that investors get adequate returns on their investments.