Net Forex inflow rises 7.3% to $33.9bn in 2023

The net foreign exchange (Forex) inflow into the economy increased by 7.3 per cent, year-on-year, YoY, to $33.9 billion in 2023 from $ 31.58 billion in 2022.

The increase despite the low dollar inflow plaguing the FX market during the period was driven by 22.7 per cent decline in net FX outflow from the economy during the year.

Analysis of data from the CBN’s Quarterly Statistical Bulletin for 2023 showed that FX inflow   into the economy fell by 8.9 per cent YoY to $65.76 billion in 2023 from $72.19 billion recorded in 2022.

Similarly, FX outflow fell 22.7  percent YoY to $30.86 billion in 2023 from $39.92 billion in 2022.

As a result, net FX inflow grew by 7.3  per cent, YoY, to $33.9  billion in 2023 from $31.58 billion in 2022.

Autonomous FX sources.

Foreign exchange inflow through the autonomous sources fell 2.5  per cent to $40.2  billion in 2023 from $41.24 billion in 2022.

FX outflow through the autonomous sources fell by 41.8 per cent YoY to $5.78 billion in 2023 from $9.94  billion in 2022.

Consequently, net FX inflow through autonomous sources increased by 9.96  per cent YoY to $34.42 billion in 2023 from $31.3 billion in 2022.

Further analysis showed that foreign exchange inflow through the CBN fell by 19.8 percent to  $23.96 billion in 2023 from $29.88 billion in 2022.

Also, foreign exchange outflow through the apex bank fell by 16.8 per cent to $26.9 billion in 2023 from $32.35 billion in 2022.

Consequently, the CBN recorded net foreign exchange outflow of   $2.94 billion in 2023, representing a 19  per cent rise  from the $2.47 billion recorded in 2022.