Naira Crosses N1500/$ across All Markets as CBN Lists Sources of Dollar Inflow

Naira Crosses N1500/$ across All Markets as CBN Lists Sources of Dollar Inflow

  • On Wednesday, the value of the naira remained weak, fluctuating on the black market between N1,498 and N1,505 per US dollar
  • World Bank and Afreximbank provided the Nigerian economy with over $5.95 billion in funding in a single month, June 2024
  • The CBN governor stated that the top bank's use of monetary policy tools is helping the foreign exchange market

Legit.ng journalist Zainab Iwayemi has over 3 years of experience covering the Economy, Technology, and Capital Market.

Nigeria's currency, the naira, continued its weak run on Wednesday, trading between N1,498 to N1,505 per dollar on the black market, or parallel market, despite $24 billion in inflows during the first quarter of 2024.

Naira crosses N1500/dollar
The nation registered a $24 billion in total foreign exchange inflow in the first three months of 2024. Photo Credit: Naira
Source: Getty Images

The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, stated in a Tuesday interview with Bloomberg that the nation registered a $24 billion in total foreign exchange (FX) inflow in the first three months of 2024.

Read also

Nigeria records massive dollar inflow as CBN gives new orders to UPS, Western Money Transfer, others

The Nigerian economy received approximately $5.95 billion in funding from the World Bank and Afreximbank in a single month, June 2024.

More on foreign transfer

BusinessDay reported that foreign currency transfer into a nation is referred to as a foreign exchange inflow. These inflows can originate from a number of places, including exports, which are the sales of goods and services by a nation to other nations in exchange for foreign exchange.

Another source of inflow is foreign direct investment (FDI), which refers to investments made in domestic firms by foreign corporations through things like factory setup, real estate purchases, and ownership holdings in local businesses. International exchange inflows can also come from grants, remittances, international aid, and portfolio investments.

Cardoso reported that compared to the inflows recorded in the prior quarters u until 2021, the foreign exchange inflows for the first quarter of 2024 are almost 50% greater.

Read also

Naira depreciates again against US dollar, banks, traders quote new exchange rate

The CBN governor declared that the FX market is benefiting from the apex bank's deployment of monetary policy instruments.

He said,

“These tools are having a positive impact. Therefore, we believe that liquidity will continue to grow by continuing on this path.”

According to data from the FMDQ Securities Exchange Limited, the naira lost 0.71 percen of its value when the dollar was quoted at N1,500.79, which was less than the N1,490.20 quoted at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday.

The local currency had stabilised at N1,490 for about a month as end consumers' desire for dollars moderated.

CBN reportedly ends forex sales to BDC

Legit.ng reported that a new report indicated that the Central Bank of Nigeria (CBN) may have finally stopped funding Bureau de Change Operators (BDCs).

The report, which emerged recently, states that the apex bank wants to further liberalise the FX market by testing its reform template and minimise quick fixes by applying mechanical approaches to institutional processes in FX market management.

Read also

“N1,500 Per Dollar”: CBN Governor sends message to Nigerians over naira depreciation, makes promises

The report said the CBN is currently reviewing significant policies to strengthen the implementation or tweak its reforms.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

Tags: