Reduced Foreign Exchange Transactions to N320 billion in 9months due to Inflation, Dollar Shortages.
Investigations by the Daily Sun show that total international transactions on the platform of the Nigerian Exchange Limited (NGX) fell to N321. 04 billion in the first nine months of 2022, despite the economy being plague by spiraling inflation.
These transactions, as well as trade data from market operators, were in the Domestic; and Foreign Portfolio Investment (FPI) September 2022 report. It showed that, over a 15-year period, foreign transactions declined by 29.38%, from N616 billion to N435 billion (2007-2021).
On the other hand, over the time period under consideration, there were N1.65 trillion in total domestic transactions. Similarly, domestic inflows and outflows on the market in September were N30.84 billion and N31. 39 billion, respectively, compared to N10.1 billion and N9.6 billion in inflows and outflows from outside.
Total transactions at the national stock exchange fell by 33.94% as of September 30, 2022, from N123. 97 billion (about $289.04 million) in August 2022 to N81. 90 billion (around $187.09 million). Domestic sales in the current month (September 2022) and the previous month (August 2022) were compared, and it was found that retail transactions fell by 14. 14%, from N39.81 billion in August to N34.18 billion in September.
The involvement of overseas investors is at its lowest level in 14 months, while local investors are net sellers for the second straight month.