Foreign exchange inflow to Nigeria hits $55.5 billion in seven months

The country recorded a foreign exchange inflow of $55.5 billion in seven months, according to data obtained from the Central Bank of Nigeria.

The increase in foreign exchange inflows was attributed to higher non-oil revenue and Eurobond proceeds, among other factors.

According to CBN economic reports, the country earned $18.3 billion in the second quarter of 2021, $30.2 billion in the third quarter and $7 billion in October.

The apex bank said foreign exchange inflows into the economy improved in the third quarter due to higher non-oil revenue.

He said: “Currency inflows into the economy increased significantly by 65.0% to $30.20 billion from $18.3 billion in the previous period. The development was spurred by the 158.4% and 13.4% increase in admissions via CBN and standalone sources, respectively.

“Foreign exchange inflows through the bank at $16.83 billion increased significantly from $6.51 billion in the prior quarter due to the additional allocation of SDRs and proceeds from the sale of euro- A disaggregation showed non-oil revenue increased to $14.97 billion from $4.60 billion in the prior quarter.

“However, revenue from oil-related sources fell 2.7% to $1.86 billion, compared to the value in the second quarter of 2021. The inflow of foreign exchange through autonomous sources was $13.37 billion, compared to $11.79 billion in the previous period, as a result of improved flows from invisible purchases and non-oil export earnings.

The CBN said total foreign exchange inflows into the economy were $7 billion in October, down from $13.38 billion in September.

He said: “The difference between the levels in October and the previous month is mainly explained by the debt proceeds from Eurobonds, which boosted revenues in September 2021.

“However, currency outflows through the economy increased by 32.3% to $4.31 billion in October 2021. Outflows through the bank increased by 45.6% compared to September (mainly third-party MDA transfers and interbank sales).

“In contrast, own-source outflow declined by 7.2% to $0.76 billion, owing to lower invisible imports. Consequently, the economy recorded a net inflow of $2.69 billion in during the period considered.

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