Foreign Exchange Inflow Into Nigeria Rises to $46.92 Billion as Naira Gains In Official Window
- The Nigerian economy recorded an increased forex inflows in the first 10 months of 2024
- Information from the Central Bank of Nigeria shows that foreign exchange inflow into the economy rose by 65,7% to 46.92 billion
- The inflow helped the naira’s recovery in the latter part of the year as it rallied against the US dollar in FX markets
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Net forex inflows into the Nigerian economy spiked by 65.7% yearly to $46 92 billion in the first 10 months of last year, up from $28.31 billion in 2023.
According to data from the Central Bank of Nigeria, aggregate FX inflow into the economy increased yearly by 41% to $79.8 billion in 10 months from $55.57 billion in the first 10 months of 2023.
Source: Getty Images
Forex outflows reduce in 2024
However, FX outflows from the economy dropped 1.4% yearly to $29.84 billion in 10 months in 2024 from $30.29 billion in 2023.
The net FX inflow via autonomous sources increased 73% yearly to $39.7 billion in 10 months from $22.93 billion in 2023.
The CBN data shows that inflows via the apex bank increased by 55% yearly to $32.94 billion in 10 months in 2024 from $21.25 billion recorded last year.
However, outflows via the CBN dropped by 1.11% to $25.74 billion in the first 10 months of 2024 from $26.03 billion in 2023.
Net inflows via the CBN increased by 556.8% yearly to $7.16 billion in the 10 months of 2024, compared to $1.09 billion in 2023.
Vanguard reports that in CBN’s Economic Report for October 2024, the apex bank noted that the economy recorded a lower monthly net FX inflow due to decreased inflow through the bank.
According to the report, foreign exchange flows through the economy accounted for a net inflow of $4.86 billion in September 2024, compared to $6.35 billion in September 2024.
The naira recovers marginally against the dollar
The development was reflected in the performance of the local currency, the naira, which began to rally against the US dollar in the fourth quarter of last year.
During that period, the CBN introduced the Blomberg Matching System for forex trading, enhancing the transparency of the FX market.
Analysts disclosed that the newly introduced Electronic Foreign Exchange Market System (EFEMS) aided the naira’s marginal recovery against the dollar.
The CBN later mandated that all banks and authorised FX dealers use the new trading platform and pegged daily trading at $10,000.
Naira continues to gain in the new year
Legit.ng earlier reported that the naira continued to rally against the US dollar into the new year as FX pressure eased.
FMDX Exchange data shows that the naira traded at N1,537 per dollar on Friday, January 3, 2024.
The amount is an improvement compared to the N1,538 traded on the first working day of the new year.
Reports say the market experienced heightened bids as dealers quoted the naira at N1,545 on Friday, January 3, 2024, and the lowest offer was N1,533 per dollar.
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Source: Legit.ng
