Global uncertainty and investor risk aversion drive 20.7% drop in Nigeria’s FX inflows
AI Market Summary
Nigeria's June FX market inflows fell 20.7% as domestic FX supply from exporters/importers and corporates contracted sharply and foreign portfolio inflows weakened, reflecting a shift toward global risk-off positioning amid geopolitical uncertainty. While FDI rose, it did not offset reduced liquidity, underscoring emerging-market vulnerability to changes in risk premia and potentially tightening financial conditions for frontier assets.
Impact level
● Low
Affected assets
NCCOGOLD2USD/USDT+0.69%
AI Insight · NCCOGOLD2USD/USDTAI Insight
▼ Bearish
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Nigeria’s total foreign-exchange market inflows in June fell 20.7% year on year to $3.31 billion, as FX supply from exporters and importers slid 32.5% and inflows from non-bank corporates dropped 30.5%. Foreign portfolio investment also weakened by 13.9%, adding to the broader slowdown. Foreign direct investment rose 37.8% but failed to offset the declines. Analysts said more cautious global risk sentiment and heightened geopolitical uncertainty are weighing on inflows and highlighting the market’s sensitivity to external risk premia.
