Boost For Economy as Forex Flows Surge to $5.95 Billion in 12 Months, Naira Affected
- Data from the Central Bank of Nigeria (CBN) economic report shows that Nigeria’s economy recorded increased net FX flows
- The data shows that net FX flows rose by 245.9% to $5.94 billion in the 12 months ending November 2024
- The net forex flow is the difference between the total inflow and outflows of foreign exchange.
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian economy experienced increased foreign currency flows in the last 12 months ending November 2024 as the net FX rose by 245.9%.
According to data from the Central Bank of Nigeria (CBN) economic report, net FX flows through the economy increased to $5.95 billion in November 2024 relative to $1,7 billion in the previous year.
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The difference between FX flows and inflows
The net forex flow is the difference between the total inflow and outflows of foreign exchange.
A positive net FX flow shows that more forex is entering the economy than exiting, which can boost the country’s reserves and exchange rate.
Legit.ng previously reported that Nigeria's external reserves rose above the internationally accepted threshold of three months of import cover during the period.
Nigeria’s reserves rise to $40.38 billion
The reserves rose to $40.38 billion at the end of November 2024, from $39.71 billion at the end of October 2024.
BusinessDay reports that the rate can cover over nine months of import of goods and services or 13 months of goods only.
Every month, the Nigerian economy saw a lower net FX inflow in November 2024 due to a decline in inflow through the CBN.
Foreign exchange flows via the economy accounted for a net inflow of $5.95 billion, relative to $4.86 billion in October 2024.
Per the CBN data, aggregate FX exchange inflow dipped to N$8.40 billion from $9.15 billion in the month before.
FX inflow experiences mixed performances
Also, foreign exchange outflow dropped to $2.45 billion, from $4,29 billion in the previous month.
Forex inflow through CBN dipped to $2.91 billion from $4.48 billion in the previous month, from $4.67 billion in the preceding month.
Outflow through the CBN dipped to $2.09 billion, from $3.73 billion in the preceding month, while autonomous outflow dropped to $0.36 billion, from $o.56 billion in October 2024.
CBN recorded a net inflow of $0.82 billion relative to $0.75 billion in October 2024, while a net inflow of $5.13 billion was recorded via autonomous sources, compared to $4.11 billion in the previous month.
The naira depreciates in forex markets
According to the report, the Nigerian currency depreciated by 1.78% to N1,670.78 per dollar from N1,641 in the preceding month.
However, during the period, the exchange rate of the Nigerian Foreign Exchange Market (NFEM) rose by 0.39% to N1,663.90 per dollar, from N1,670.47 at the end of October 2024.
The average turnover at NFEM increased by 24.78% to $301.52 million FROM 241.65 million in October 2024, as activities increased.
Banks, dealers sell dollars at high rates as naira loses 0.7% value
Meanwhile, Legit.ng earlier reported that the naira depreciated on Tuesday, February 11, 2025, in the official and black market as increased.
The US dollar traded at N1,513 relative to N1,502 it sold the previous day.
According to data from the Nigerian Foreign Exchange Market (NFEM), the naira opened trading at N1,508%, slightly lower than the N1,504 per dollar it traded on Monday, February 10, 2025.
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Source: Legit.ng
