Boost For Naira as CBN Explains $22.8 Billion Inflow into Nigerian Economy in 2024

• The Central Bank of Nigeria has revealed that FX inflow into the Nigerian economy grew by 3.01% in the third quarter of 2024
• The bank said in its report that inflows through the apex bank rose by 39.63%, reaching $11.86 billion
• Forex exchange outflows increased, rising by 15.18% to $8.43 billion. Outflows via the apex bank increased by 27.91%

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria’s economy saw a 3.01% rise in foreign exchange inflows, hitting $22.89 billion in the third quarter of 2024 from $22.22 billion in the previous quarter.

The Central Bank of Nigeria (CBN) disclosed this in its latest economic report.

Dollar outflows from Nigeria surges

The report revealed that inflows via the CBN grew by 39.63%, reaching $11.86 billion from $8.49 billion in the second quarter of 2024, while autonomous sources saw a drop of 19.66% at $11.03 billion from $13.72 billion.

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Also, forex exchange outflows increased by 15.18% to $8.43 billion. Outflows via the apex bank increased by 27.91%, while autonomous sources accounted for 30.06% during the review period.

The CBN report said that forex outflows via the economy spiked by 15% every quarter and four per cent yearly to $8.4 billion. Cumulative forex inflow and outflow resulted in a net inflow of 14.5 billion.

Analysts attribute the increase to CBN’s strategic interventions in the FX market, which alleviated demand pressures and boosted liquidity.

BusinessDay reports that in its last Monetary Policy Committee (MPC) meeting in November, CBN hiked the interest rate by 25 basis points to 25.70%.

External reserves grow

In recent years, CBN’s policies have aimed to balance inflation with economic control.

However, other factors such as interest rates, geopolitical risks, and oil prices influenced foreign inflows.

Nigeria’s gross external reserves hit $446.9 billion in October 2024 to $40.2 billion in November 2024.

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Every year, external reserves increased by $7 billion, showing the positive impact of sustained FX inflows and reserve management strategies.

CBN Explains Reason For New Withdrawal Limits on PoS, ATMs

Legit.ng earlier reported that CBN revealed that introducing the N100,000 daily withdrawal limit on PoS terminals is part of plans to promote cashless policy.

CBN said the move will address operational challenges, reduce fraud, and establish unified standards.

The apex bank introduced the measure circularly, restricting PoS agents to N100,00 for individuals and N1.2 million for operators.

Source: Legit.ng