Foreign Exchange Inflows From Nigerians Abroad Rises to $4 Billion in 9 Months
- The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has revealed that diaspora remittances increased 79% last year
- The CBN boss disclosed that remittances through International Money Transfer Organisations (IMTOs) rose to $4.18 billion in nine months of 2024
- Cardoso attributed the rise to policies introduced by the apex bank, saying it boosted the economy and increased market confidence
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Diaspora remittances, monies sent by citizens abroad via International Money Transfer Operators (IMTOs), rose astronomically to $4.18bn in the first nine months of last year, representing a 79% increase from the $2.33 billion in the corresponding period in 2023.
The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, revealed this at the Monetary Policy Stakeholders Forum in Abuja.
Source: Twitter
Cardoso reveals reasons for the increase
Cardoso attributed the development to various reforms by the CBN in the past year.
According to him, beyond monetary policy, the apex bank embarked on essential reforms to boost the financial system and ensure stability.
He stated that the reforms have been fruitful, with remittances via IMTOs hitting 79.4% in the last nine months of 2024, relative to $2.33 billion in 2023.
Cardoso said the past year was challenging as inflation rose massively due to global and domestic shocks.
Cardoso reveals why CBN raised interest rates
He revealed that excess naira in the system heightened demand-driven inflation, worsened by supply-side hassles from structural deficits.
Cardoso explained that the apex bank introduced a tightening cycle to tame rising inflation, stressing that throughout last year, CBN implemented a series of policy measures across six MPC meetings such as raising MPR by 975 basis points, resulting in 27.50 % interest rates.
He said the CBN also increased the Cash Reserve Ratio (CRR) of deposit money banks by 1,750 basis points to 50% and adjusted the asymmetric corridor around the MPR.
Cardoso said:
“Counterfactual estimates suggest that without these decisive policy interventions, inflation could have reached 42.81 per cent by December 2024.”
A report by Vanguard said that despite headwinds, Cardoso said his commitment to price and monetary stability has been fruitful.
External reserves rise
Analysts believe the current inflow boosted the naira’s performance and contributed to the rise in external reserves to over $40 billion.
Cardoso disclosed that Nigeria’s FX reserves increased by $6 billion last year, saying that the growth was due to the policy undertaken by his administration, Legit.ng previously reported.
He stated that despite the challenges of 2024, the apex implemented robust reforms that established the nation’s macroeconomic environment.
CBN’s policies boosted Nigeria’s credibility
Cardoso said that by engaging with stakeholders, the bank boosted Nigeria’s credibility on the global stage as it addressed local challenges.
The changes include clearing the verified forex claims by international airlines and other investors, which amounted to $7 billion. The CBN also discontinued the quasi-fiscal interventions, unifying the multiple exchange rate windows and other achievements.
According to Cardoso, CBN introduced innovations and policies in areas such as the FX market and remittances, financial inclusion, diaspora engagement, compliance, and private, and private sector growth.
The financial institutions regulator prioritised investor confidence, boosting the efficiency of the financial markets, and introducing innovations across sectors.
CBN gives reason for dollar crash
Legit.ng earlier reported that CBN has disclosed that the naira will stabilise as investors’ confidence in the economy rises.
CBN governor, Olayemi Cardoso, disclosed this in Abuja on Thursday, January 30, 2025, at the Monetary Policy Forum (MPF) with stakeholders.
The CBN boss said that the monetary regulator believes that the policies it introduced set Nigeria on the sustainable path to economic stability.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
