The foreign exchange market rose by 21.69 per cent to $10,308.01m in the first half of 2020, compared to $8,470.96m recorded in the corresponding period of 2019.
This was disclosed in the Central Bank of Nigeria’s ‘Half-Year Activity Report 2020’ released on Wednesday.
The report showed that $5,056.55m was sold at the investors and exporters window, $1,198.48m at the inter-bank spot, $570m for small- and medium-sized enterprises, $312m for invisibles, and $3,170.97m for forwards sales.
However, the bank’s total purchase stood at $2,210.63m, which represented a negative decline of 76.86 per cent from $9,552.28 recorded in H1 2019 and further resulted in a net sale of $8,097.37m compared to $1,081.31m in H1 2019.
In the review period, $5,425.30m matured at the FX market, representing an increase of 8.95 per cent.
Further analysis showed that $2,504.62m outstanding was recorded at the end of June 2020, representing a negative decline of 1.86 per cent.
According to CBN, the foreign exchange market operations were impacted by the decline in crude oil demand, reduced accretion to the reserves due to the drop in crude oil prices, and foreign portfolio capital reversals.
“In addition, global COVID-19 lockdowns contributed to the slowdown in economic activities. In response, the bank took deliberate efforts at sustaining price stability and preserving foreign reserve levels,” CBN stated.
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