Banks’ Returns on FX Utilisation Show Reduction in Capital Outflows – Thisday

The returns on foreign exchange (FX) utilisation published by some of the international banks have revealed that the pressure on capital outflows has gradually subsided.

Unlike in the past when FX purchases for repatriation of capital used to feature prominently on returns of FX utilisation published by Stanbic IBTC and Standard Chartered, the report for the week ended August 12, 2016 published last week showed gradual easing of FX outflows.

For instance, while Stanbic IBTC returns on FX utilisation showed that the bank sold $62,646,491.70 to 135 customers (both individuals and corporates), the FX purchased by foreign portfolio investors that included The Northern Trust Company, SNNL/JP Morgan Chase Bank, HSBC Bank Plc, and the Bank of New York Mellon was just $2,699,545.98. Previously, FX transactions by the aforementioned investment banks used to dominate Stanbic IBTC’s FX returns publication.

The Central Bank of Nigeria (CBN) ditched its 16-month old peg on the naira in June and introduced a flexible exchange rate regime to allow the currency to trade freely on the interbank market.