Foreign Exchange Inflows Reach $10.7 Billion in Just 2 Months

The Central Bank of Nigeria (CBN) has revealed that Nigeria recorded a total of $10.7 billion in foreign exchange inflows into the country from April to May.

The CBN made this known in its May economic report that it released last week on the country's foreign exchange flows.

The report shows that the Nigerian economy witnessed an increase in its net foreign exchange in May relative to the preceding month.

The report partly reads,

• Foreign exchange flows through the economy recorded a net inflow of $3.59 billion, compared with $2.02 billion in the preceding period.

• Aggregate foreign exchange inflow into the economy increased by 29.1% to $6.03 billion from $4.67 billion in the preceding month. However, foreign exchange outflow fell by 8.2% to $2.44 billion from $2.65 billion in the preceding month.

The CBN also reported that foreign exchange inflows through banks declined by 27.9% to $1.70 billion from the record in April, which was $2.36 billion. Also, outflows from banks declined by 15.2% to $2.03 billion from $2.39 billion in April.

“As such, the CBN recorded a net outflow of $0.33 billion, compared with a net outflow of $0.03 billion in the preceding month,” the report added.

The report also showed that autonomous inflow rose by 87.2% to $4.33 billion, far from the $2.31 billion in the preceding month, while autonomous outflow rose to $0.41 billion from $0.26 billion in April. Aside from that, a net inflow of $3.92 billion was recorded, compared with $2.05 billion in April.

Punch reported that the Autonomous FX market, according to FMDQ, comprises recognized FX trading segments, including but not limited to the Inter-bank market, the I&E FX window, and any such approved and recognized trading segment as may be defined.

The CBN economic report shows that the autonomous market net FX inflow was $3.92 billion, compared to $2.05 billion in April.

The report shows that autonomous inflow rose by 87.2% to $4.33 billion in the month under review from the preceding month, while autonomous outflow rose to $0.41 billion from $0.26 billion in April.

Speaking with the Tribune, Muda Yusuf, director/chief executive officer of the Centre for the Promotion of Private Enterprise, said autonomous inflows come outside the government’s earnings of FX. It comes from private sources, unlike remittances that come from oil, Nigeria's major source of FX.