Net forex inflow rises 67% to $27.6bn

Net foreign exchange inflows to Nigeria’s economy rose by 67.8% to $27.6 billion in the first half of 2024 from $16.44 billion in 2023.

This happened because of a 34.6% YoY increase in net inflows through autonomous sources and a  170% YoY increase in net forex inflow through the Central Bank of Nigeria.

Data from the CBN’s quarterly Economic Statistics showed that the forex inflow to the economy rose YoY by 41.6%, to $47.73 billion in H1’24, and from $33.7 billion in H1’23. Also, gross inflows through autonomous sources grew by 47.6% YoY to $31.15 billion in H1’24 from $21.16 billion in H1’23.

However, forex outflows from the economy rose by 16.3% YoY to $20.12 billion in H1’24  from $17.3 billion in H1’23

Similarly, outflow through autonomous sources rose sharply by 160.8% YoY to $5.4 billion in H1’24 from $2.07 billion in H1’23.

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Consequently, net forex inflow through autonomous sources rose 34.6% YoY to $25.7 billion in H1’24 from $19.09 billion in H1’23.

The data also showed that inflows through CBN grew by 31.7%YoY to $16.6 billion in H1’24 from $12.6 billion in H1’23.

However, outflows through CBN declined by 15%to $14.7 billion in H1’24 from $17.29 billion in H1’23.

Consequently, net forex inflow through the CBN rose 170 per cent, YoY to  $1.86 billion in H1’24 from -$2.65 billion in H1’23.

Meanwhile, inflows through International Money Transfer Operators (IMTOs) grew by 47% YoY to $2.33 billion in H1’24 from $1.58 billion in H1’23.  This came on the heels of the recent measures by the CBN permitting eligible IMTO access to naira liquidity at the official window.

The CBN said the measures aim to make the forex markets more efficient and increase remittance flows through formal channels.