The Central Bank of Nigeria (CBN) has announced a historic surge in remittance inflows, reaching an all-time high of $553 million in July 2024. This is according to a statement by the Director of Corporate Communications, Hakama Sidi Ali on Tuesday.
This figure represents a 130% increase from the corresponding period in 2023, underscoring the effectiveness of recent policy measures aimed at enhancing liquidity in Nigeria’s foreign exchange market.
According to the announcement, “The CBN has reported a significant increase in remittance inflows, reaching $553 million in July 2024, up 130% from the same period in 2023. This figure represents the highest monthly total inflows on record and reflects ongoing efforts by CBN to enhance liquidity in Nigeria’s foreign exchange market.”
The CBN attributed the remarkable growth in remittance receipts to policy initiatives, including granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for IMTOs. These efforts have bolstered remittance inflows, supporting the CBN’s goal of doubling formal remittance receipts within a year.
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Diaspora remittances remain a vital source of foreign exchange for Nigeria, complementing foreign direct investment and portfolio investments. The CBN’s initiatives have fostered public confidence in the foreign exchange market, strengthened the banking system, and promoted price stability, essential for sustainable economic growth.
Recent data from the National Bureau of Statistics revealed a slowdown in Nigeria’s year-on-year headline inflation rate in July 2024, a positive sign that the CBN’s monetary policy tightening measures are yielding results.
The CBN anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market. “The Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria”, the statement reads.
Despite the high remittances, the Naira fell against the dollar consecutively on Monday and Friday to N1579.89 per dollar. However, the CBN remains committed to monitoring market conditions and adjusting policies to enable greater remittance flows into Nigeria.
