Diaspora remittances rise 130% to $553m – CBN

cover, Financial Markets

The Central Bank of Nigeria, CBN, today said diaspora remittances increased year-on-year by 130 percent to $553 million in July 2024 from the corresponding period of 2023.

CBN disclosed this in a Statement signed by its Acting Director Corporate Communication, Mrs. Hakama Sidi Ali.

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According to the apex bank, the continuous rise in remittances was due to its recent policies geared towards improving liquidity in the country’s foreign exchange market.

CBN said: “The CBN has reported a significant increase in remittance inflows,
reaching $553 million in July 2024, a 130 percent increase from the corresponding period in 2023.

“This figure represents the highest monthly total inflows on record and reflects
ongoing efforts by the CBN to enhance liquidity in Nigeria’s foreign exchange market.

“The substantial growth in remittance receipts is attributable to policy measures introduced by the CBN to enhance liquidity in Nigeria’s Foreign Exchange Market.

“These Measures include granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for IMTOs.

“Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing
both foreign direct investment portfolio investments.

“TheCBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year.

“The increase in remittances is a strong testament to the success of the CBN’s ongoing
efforts to bolster public confidence in the foreign exchange market, strengthen robust and
inclusive banking system,and promote price stability,which is essential for sustained economic growth.

“Recent data from the National Bureau of Statistics (NBS) revealed that Nigeria’s year-on- year headline inflation rate slowed in July 2024, for the first time in 19 months-a clear indication that the CBN’s monetary policy tightening measures are delivering results.

“The CBN anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market.

“The Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria.”