Net Foreign exchange inflow rises 67% to $27.6bn

The net foreign exchange inflows to Nigeria’s economy rose by 67.8 percent to $27.6 billion in the first half of 2024 (H1’24) from $16.44 billion in the corresponding period of 2023.

This development was driven by 34.6 percent, Year-on-Year, YoY, increase in net forex inflow through autonomous sources and 170 per cent YoY increase in net forex inflow through the Central Bank of Nigeria, CBN.

Data from the CBN’s quarterly Economic Statistics for the review period showed forex inflow to the economy rose YoY  by 41.6 percent to $47.73 billion in H1’24 from $33.7 billion in H1’23.

Similarly, forex outflows from the economy rose  by 16.3 percent YoY to $20.12 billion in H1’24  from N17.3 billion in H1’23.

Vanguard findings showed that inflows through autonomous sources rose by 47.6 percent YoY to $31.15 billion in H1’24 from $21.16 billion in H1’23.

Similarly, outflow through autonomous sources rose sharply by 160.8 percent YoY to $5.4 billion in H1’24 from $2.07 billion in H1’23.

Consequently, net forex inflow through autonomous sources rose by 34.6 percent YoY to $25.7 billion in H1’24 from $19.09 billion in H1’23.

The data also showed that inflows through CBN rose  by 31.7 percent YoY to $16.6 billion in H1’24 from $12.6 billion in H1’23.

However, outflows through CBN declined by 15 percent to $14.7 billion in H1’24 from $17.29 billion in H1’23.

Consequently net forex inflow through the CBN rose 170 per cent, YoY to  $1.86 billion in H1’24 from -$2.65 billion in H1’23.

Meanwhile, in another development inflows through International Money Transfer Operators (IMTOs) grew by 47 percent YoY to $2.33 billion in H1’24 from $1.58 billion in H1’23.  This is coming on the heels of the recent measures by the CBN permitting  eligible IMTO access to naira liquidity at the official window.

The CBN said the measures are aimed  to enhance the activities of the foreign exchange (FX) markets and enable greater remittance flows through formal channels.