Nigeria, Jan. 6 -- Dollar inflows into Nigeria's official foreign exchange market weakened sharply last week, signalling renewed caution among foreign investors despite recent market reforms.

Data from the Nigeria Foreign Exchange Market show total inflows declined by 20.67 percent to 593.70 million dollars, down from 748.40 million dollars recorded a week earlier.



A research note by Coronation Merchant Bank revealed that the drop was largely driven by a steep fall in offshore participation. Foreign portfolio investment fell by more than 70 percent to 46 million dollars, while foreign direct investment declined to just 7 million dollars, leaving foreign sources responsible for barely 17 percent of total FX inflows.



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