Nigeria has recorded a 55% increase in its foreign exchange inflows in the first half of 2024. This is according to the Central bank of Nigeria, CBN.
According to the CBN, the increase was spurred by a rise in capital importation which hit $6 billion in June 2024. Also, the record inflows through diaspora remittances contributed to the increase.
Based on this, Nigeria’s foreign exchange inflow rose to $25.4 billion between January and June this year. In a statement issued yesterday, the CBN said this increase in FX inflows is an evidence that the policies of the bank are starting to yield result.
The statement is coming on the back of the CBN’s sale of $876.26 million at N1,495/$1 to 26 qualified banks in its latest Retail Dutch Auction. The CBN says the auction was done to reduce FX demand pressure in the market and promote price discovery. This auction is the biggest one yet done by the CBN under Yemi Cardoso’s leadership.
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The Central bank has been managing the ripple effects of the unification of the exchange rate. This policy and removal of subsidy on petrol has created an unfriendly business environment in Nigeria. There is record inflation and decline of the naira against the dollar. As a result, businesses have been struggling to operate while some have shut down.
The CBN hopes that the FX inflow increase will help improve liquidity in the market. Also, it has expressed commitment to ensuring a transparent and market driven foreign exchange market. With this, the CBN hopes to increase the market’s capacity to meet all the legitimate demands of Nigerians.
In addition, the increase is expected to build confidence in the market and help ensure stability of the economy.
