Net Forex Inflow Rises to $27.6bn in First Half of 2024 – CBN
Nigeria’s foreign exchange inflows surged by 67.8% to $27.6 billion in the first half of 2024, marking a significant improvement from $16.44 billion in the same period of 2023, according to data released by the Central Bank of Nigeria (CBN). This rise is attributed to increased forex inflows from autonomous sources and a substantial jump in net inflows via the CBN.
The total foreign exchange inflow to the Nigerian economy increased by 41.6%, reaching $47.73 billion in the first six months of 2024, compared to $33.7 billion in the corresponding period of the previous year. Gross inflows from autonomous sources also grew by 47.6% to $31.15 billion, while outflows from these sources climbed by 160.8% to $5.4 billion.
The CBN’s contribution to this growth was notable, with its inflows rising by 31.7% to $16.6 billion. At the same time, outflows from the CBN decreased by 15% to $14.7 billion, resulting in a net forex inflow of $1.86 billion.
Additionally, International Money Transfer Operators (IMTOs) recorded a 47% increase in inflows, amounting to $2.33 billion. This surge was driven by the CBN’s efforts to improve the efficiency of the foreign exchange market and boost remittance flows into the country.
The sharp rise in net inflows, particularly through the CBN and autonomous sources, reflects positive developments in Nigeria’s forex market. The central bank’s policies, aimed at stabilizing the naira and attracting foreign investment, are seen as key drivers behind this trend. Analysts expect that continued efforts to enhance market stability and liquidity will sustain these gains in the coming quarters.
This increase in forex inflows is viewed as a promising indicator for Nigeria’s economic outlook, as the country seeks to build on foreign investment and improve foreign exchange reserves amidst global economic challenges.
