Business

Foreign Exchange Inflows Rise by 22% in First Two Months of 2023, Boosted by Drop in Outflows


According to the Monthly Economic Report for February 2023 released by the Central Bank of Nigeria (CBN), net foreign exchange inflows in the country’s economy experienced a significant year-on-year increase of 22 percent, reaching $5.15 billion during the first two months of 2023. This marked an improvement from $4.22 billion in the corresponding period of the previous year.

The report highlighted that aggregate forex inflows in the same period rose by 1.7 percent year-on-year, totaling $10.94 billion compared to $10.75 billion in the first two months of 2022.

The positive net position was largely driven by a noteworthy 11 percent decrease in total outflows, which amounted to $5.79 billion in the first two months of 2023, down from N6.53 billion in the same period of the previous year.

Specifically, the data revealed that inflows through the CBN experienced a slight year-on-year increase of 1.4 percent, reaching $4.37 billion in the first two months of 2023 compared to $4.31 billion in the corresponding period of 2022. On the other hand, outflows through the CBN declined by 2.6 percent to $4.76 billion in the first two months of 2023, down from $4.89 billion in the same period of the previous year.

In terms of monthly comparisons, the CBN stated that net foreign exchange inflows in February saw a 5.2 percent increase from January 2023, totaling $2.64 billion, largely driven by a rise in inflows through the CBN.

The CBN’s official statement indicated, “Foreign exchange flow through the economy recorded a net inflow of $2.64 billion in February, compared with $2.51 billion in the preceding period.

Aggregate foreign exchange inflow into the economy increased by 7.2 percent to $5.66 billion in February, from $5.28 billion in the preceding month. Similarly, foreign exchange outflows rose by 9.0 percent to $3.02 billion in February, from $2.77 billion in the previous month.”

The report further revealed that foreign exchange inflows through the CBN experienced a significant month-on-month increase of 37.7 percent, reaching $2.53 billion in February, up from $1.84 billion in January. Conversely, outflows through the CBN rose by 7.0 percent to $2.46 billion compared to $2.30 billion in January.

However, autonomous inflows saw a 9.1 percent decrease to $3.12 billion in February, down from $3.44 billion in the previous month. Autonomous outflows, on the other hand, increased to $0.56 billion from $0.47 billion in January. As a result, a net inflow of $2.56 billion was recorded through autonomous sources in February, compared to $2.97 billion in January.
1 year ago
Adeyinka Arutu

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