Currency flow to Nigeria increases by $10.75 billion

Nigeria recorded foreign exchange inflows of $10.75 billion in two months, figures obtained from the Central Bank of Nigeria have revealed.

The CBN has revealed in its monthly economic report on the “Flows of Foreign Currency in the Economy”.

The report states: “The economy recorded higher net inflows of foreign exchange, driven by favorable sovereign ratings and higher oil and gas prices. Total foreign exchange inflows into the economy increased by 42.8% to $6.32 billion in February 2022 from $4.43 billion in January 2022.

“However, total currency outflows fell 5.8% to $3.17 billion from $3.36 billion the previous month.

“Further analysis shows that foreign exchange inflows via the CBN increased by 36.7% to $2.49 billion from $1.82 billion in January 2022, mainly due to the increase of 53 .0% of non-oil components, such as institutional swaps, payment refunds, TSA, third party receipts and other official receipts.”

According to the report, stand-alone inflows also rose 47.0% to $3.83 billion from $2.61 billion, due to an increase in invisible purchases (regular home accounts and total over-the-counter purchases). liking).

Currency outflows through the CBN fell 12.0% to $2.29 billion from $2.6 billion in January, mainly due to lower foreign currency sales to investors and exports, the intervention of small and medium enterprises and interbank/invisible foreign exchange windows, as well as transfers of MDAs to third parties. Standalone releases rose 15.4% to $0.88 billion from $0.76 billion in January, due to higher invisible imports.

The President of the Association of Bureaux De Change Operators of Nigeria, Alhaji Aminu Gwadabe, said that BDCs remain at the center of economic development and have the ability to attract the capital needed for the development of the Nigerian economy and the growth of the economy. deepening of the foreign exchange market.

“Expanding dollar receipt points through more than 5,000 currency exchange operators can deepen dollar inflows and significantly increase Nigeria’s foreign exchange position,” he said.

CBN Governor Godwin Emefiele previously announced the RT200 FX program to boost the supply of foreign exchange in the country through the non-oil sector over the next three to five years.

He explained that the RT200 FX program was a set of policies, plans and programs for non-oil exports that would enable the country to meet the target of $200 billion in foreign exchange repatriation, exclusively from exports. non-oil.

Comments are closed.