Tuesday, January 12, 2016 04:54 PM / TheAnalyst
Foreign exchange earnings are very important for countries in international trade being proceeds from the export of goods and services of a country, and the returns from its foreign investments.
We continue our series in breaking down the actual forex utilization of Nigeria 2013 to H1 2015 with a look at the total usage and key items
FX Utilization increased by 19.32% at the end of 2014 compared to 2013 data while available data on FX utilization from Jan – May 2015 shows figure stands at $20.94bn. Available data show that more FX were spent on tourism and educational sectors
The graph below shows the movement in FX usage while the sharp fall recorded under Jan – May 2015 is as a result of the fact that the data was for a five moth period against full year witnessed in the first two year.
Analysis on growth of FX utilization shows that Tourism and Travel Related Services recorded improved figure from 0.04% at the end of 2013 to 0.56% as at May 2015 with over 1400% growth rate. Transport services sector recorded the least with negative growth rate of -43. 47% while financial services sector which usually has the highest percentage figure records a drop of -21.16%
FX Utilization: Jan – Dec 2013
Financial Services sector has the highest FX utilization figure with 40.34% in 2013 as Industrial and Oil sectors follow closely with 15.71% and 15.16% respectively while Recreational, Cultural and Sports Services has the least.
FX Utilization: Jan – Dec 2014
Just as recorded in 2013, Financial Services sector has the highest FX utilization figure with 38.41% in 2014 as Oil sector follows closely with 15.78% while Recreational, Cultural and Sports Services has the least as Environmental Services sector recorded none.
FX Utilization: Jan – May 2015
The Financial Services sector continued to record the highest FX utilization figure with 31.80% as at May 2015 as Oil sector follows closely with 19.25% while Industrial sector came third with 17.60% utilization.