NIGERIA'S FOREIGN EXCHANGE INFLOWS HAVE INCREASED BY $10.75 BILLION

The Nigeria Foreign Exchange inflows take a good turn by increasing by $10.75 billion. Despite the economy crisis and the exchange rate growing in a high rate speed, the Nigeria foreign exchange inflow still appreciated by 10.75billon US dollars according to statistics by the Central Bank of the country, which is the bank to all financial bank in Nigeria.

According to the Central Bank of Nigeria's (CBN) monthly data release, the country received $10.75 billion in foreign money in two months.

According, the statistics in the apex bank's monthly economic report on forex indicated that the reported levels were driven by favorable sovereign ratings and increased oil and gas prices.

The trend implies an increase in net foreign exchange inflows.

According to the CBN data, overall foreign exchange inflows into the economy increased by 42.8 percent to $6.32 billion in February 2022, up from $4.43 billion in January 2022.

However, total foreign exchange outflows fell 5.8 percent to $3.17 billion, down from $3.36 billion the previous month.

“Further analysis shows that foreign exchange inflows through the CBN increased by 36.7 percent to $2.49 billion in January 2022, from $1.82 billion in January 2022, owing primarily to a 53.0 percent increase in non-oil components, such as institutional swaps, returned payments, TSA, and Third-party receipts, and other official receipts,” the report stated.

According to the report, autonomous inflows grew by 47.0 percent to $3.83 billion from $2.61 billion, owing to an increase in unseen transactions (ordinary domiciliary accounts and total Over-the-Counter purchases).

Foreign exchange outflows through the CBN, on the other hand, fell by 12.0% to $2.29 billion in February, from $2.6 billion in January, owing primarily to decreases in foreign exchange sales at the Investors and Export, Small and Medium Enterprises intervention, and interbank/invisible foreign exchange windows, as well as Third-Party MDA Transfers.

The statistics also indicated that autonomous outflows climbed by 15.4 percent to $0.88 billion in February, up from $0.76 billion in January, due to increasing invisible imports.

In his remarks, Alhaji Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria, stated that the BDCs remained at the center of economic development and have the capacity to attract needed capital for the development of the Nigerian economy and the deepening of the forex market.

“Expanding the dollar receiving points through over 5,000 Bureaux de Change operators may greatly increase Nigeria's currency position,” he added.

According to information acquired from the Central Bank of Nigeria, Nigeria has received $10.75 billion in foreign exchange inflows in the last two months.

The CBN disclosed this information in its monthly economic report on 'Foreign currency flows across the economy.'

“The economy reported stronger net foreign exchange inflows, supported by good sovereign ratings and higher oil and gas prices,” according to the study. In February 2022, aggregate foreign exchange inflows into the economy increased by 42.8 percent to $6.32 billion, up from $4.43 billion in January 2022.