Nigeria’s Net Forex Inflow Increases by 4% to $24.1bn in 9 Months

Net foreign exchange (FX) inflow into the economy rose by four per cent, year-on-year, YoY to $24.11 billion in the first nine months of 2023, 9m’23 from $23.19   billion in the corresponding period in 2022.

The marginal increase in net forex inflow follows a 69 percent increase in Net Foreign Exchange outflow through the Central Bank of Nigeria, CBN in the 9m’23 which cancelled the 14 per cent increase in Net Foreign Exchange inflow through autonomous sources during the period.

Analysis of data   from the CBN’s Quarterly Economic Report for the 9m’23   showed that FX inflow    into the economy fell by 9.6 per cent, YoY to $49.61 billion in 9m’23 from $54.92 billion recorded in 9m’22.

Similarly, FX outflow fell 19.6   percent YoY to $25.5 billion in 9m’23 from $31.74 billion in 9m’22.   

As a result, net FX inflow grew by 4.0 per cent, YoY, to $24.11 billion in 9m’23 from $23.19 billion in the corresponding period in 2022.

Autonomous FX sources

Foreign exchange inflow through   autonomous sources   fell 3.2 per cent to $30.73   billion in 9m’23 from $31.24 billion in 9m’22.

FX outflow through the autonomous sources fell by 56 per cent YoY to $3.08 billion in 9m’23 from $7.08 billion in 9m’22.

Consequently, net FX inflow through autonomous sources increased by 14   per cent YoY to $27.65 billion in 9m’23 from $24.16 billion in 9m’22.

CBN FX flows

Further analysis showed that foreign exchange inflow through the CBN fell by 18 per cent to   $19.48 billion in 9m’23 from $23.68 billion in 9m’22.   

Also, foreign exchange outflow through the apex bank fell by 12 per cent to $22.43 billion in 9m’23 from $25.42 billion in 9m’22.

Consequently, the CBN recorded net foreign exchange outflow of    $2.95 billion in 9m’23, representing a 69.5 per cent rise   from the $1.74 billion net forex outflow   recorded by the apex bank   in 9m’22.

December 27, 2023