UPDATED: Net Foreign Exchange Inflow Increases 67% To $27.6bn As IMTO’s Inflows Hit $2.33bn

UPDATED: Net Foreign Exchange Inflow Increases 67% To $27.6bn As IMTO’s Inflows Hit $2.33bn

The foreign exchange inflows to Nigeria’s economy experienced a notable increase in the first half of 2024, climbing by 67.8% to $27.6 billion from $16.44 billion in the same period of 2023.

This rise was primarily fueled by a 34.6% year-on-year surge in net forex inflow through independent sources and a significant 170% year-on-year boost in net forex inflow via the Central Bank of Nigeria (CBN).

Data from the CBN’s quarterly Economic Statistics for the aforementioned period demonstrated a year-on-year uptick of 41.6% in forex inflow to the economy, reaching $47.73 billion in H1 2024 from $33.7 billion in H1 2023.

Similarly, forex outflows from the economy saw a 16.3% year-on-year increase to $20.12 billion in H1 2024 from $17.3 billion in H1 2023.

Inflows through independent sources saw a 47.6% year-on-year growth to $31.15 billion in H1 2024 from $21.16 billion in H1 2023, while outflow through autonomous sources surged by 160.8% year-on-year to $5.4 billion in H1 2024 from $2.07 billion in H1 2023.

Consequently, net forex inflow through autonomous sources rose by 34.6% year-on-year to $25.7 billion in H1 2024 from $19.09 billion in H1 2023.

Moreover, inflows through the CBN increased by 31.7% year-on-year to $16.6 billion in H1 2024 from $12.6 billion in H1 2023. Conversely, outflows through the CBN decreased by 15% to $14.7 billion in H1 2024 from $17.29 billion in H1 2023.

As a result, net forex inflow through the CBN soared by 170% year-on-year to $1.86 billion in H1 2024 from -$2.65 billion in H1 2023.

Further more, in another development inflows through International Money Transfer Operators (IMTOs) grew by 47 percent YoY to $2.33 billion in H1’24 from $1.58 billion in H1’23. This is coming 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 are aimed to enhance the activities of the foreign exchange (FX) markets and enable greater remittance flows through formal channels.