CBN records $2.3bn increase in forex inflow

The Central Bank of Nigeria (CBN) says it reported a significant increase in foreign exchange inflow into the economy in February 2024, with marked increments in remittance payments by Nigerians overseas and purchases of naira assets by foreign portfolio investors.

The CBN Acting Director of Corporate Communications, Hakama Sidi-Ali, made this known while speaking with newsmen in Abuja on Thursday, March 7, 2024.

Sidi-Ali said: “The bank’s data indicates that overseas remittances rose to $1.3 billion in February 2024, more than four times the $300 million received in January.

“Foreign investors purchased more than $1 billion of Nigerian assets last month, with total portfolio flows of at least $2.3 billion recorded thus far in 2024 compared to $3.9 billion seen in total for last year.”

She said higher FX inflows continued in March 2024, driven by increased investor interest in short-term sovereign debt following the recent adjustment to benchmark interest rates.

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The CBN spokesperson noted that the government securities issuances had been significantly oversubscribed, with foreign investors accounting for over 75 per cent of bids received at the auctions conducted on March 1 and 6, 2024.

It would be recalled that the CBN Governor, Olayemi Cardoso, set out a strategy to curb inflation, stabilise the exchange rate, and spur confidence in the banking system and economy, using last month’s Monetary Policy Committee (MPC) meeting and a conference call with foreign portfolio investors to set expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.

Cardoso said: “All the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off.

“When people understand the real issues and see a strategy and a plan, things tend to calm down. Our objective today is to ensure that the market has supply, that the market functions, and that investors can come in and go out.”

The Star