New Telegraph

Report: Nigeria recorded $5.71bn forex inflow in August

Citing increased inflow from autonomous sources, the Central Bank of Nigeria (CBN) has said that total foreign exchange inflow into the economy rose by 5.8 per cent to $5.71 billion in August from $5.40 billion recorded in the preceding month. The apex bank stated this in its monthly economic report for August posted on its website yesterday.

Specifically, the report said: “Foreign exchange flows through the economy recorded a net inflow of $2.33 billion, an increase of 2.9 per cent, relative to the $2.27 billion in July 2023. Aggregate foreign exchange inflow into the economy increased by 5.8 per cent to $5.71 billion in August, compared with the $5.40 billion, in the preceding month.”

It further stated:“Foreign exchange outflows also rose by 8.0 per cent to $3.38 billion, in August, from $3.13 billion in the preceding month. Foreign exchange inflow through the Bank declined by 5.9 per cent to $2.44 billion in August 2023, from $2.59 billion in July 2023. Outflow through the Bank, however, rose by 6.3 per cent to $2.98 billion, from $2.80 billion in the preceding month.

“Autonomous inflow rose by 16.6 per cent to $3.28 billion, from $2.80 billion in the previous month. Similarly, autonomous outflow increased by 22.3 per cent to $0.40 billion in August 2023, from $0.32 billion in July 2023. A net inflow of $2.88 billion was recorded through autonomous sources, compared with the $2.48 billion in July 2023. The CBN recorded a net outflow of $0.55 billion, compared with the $0.22 billion in the preceding month.”

New Telegraph reports that the CBN on June 14 moved to liberalize foreign exchange trading in the country, when it announced that it was unifying its multiple exchange rates as all FX trading would only be allowed at the Investors and Exporters (I&E) window and that it had re-introduced the “willing buyer, willing seller” model.

The announcement meant that the naira had been effectively devalued, a development, analysts believe, boosted forex inflow into the economy from autonomous sources.

Meanwhile, the report stated that the Federal Government recorded a provisional fiscal deficit of N726.85 billion in August which was a contraction of 11.0 and 19.1 per cent, relative to the level in the preceding month and the proportionate target for the month, respectively.

According to the report: “The lower deficit reflected decline in interest payments during the period.”

It stated that while at N618.37 billion, provisional retained revenue of the government in August was above the collections in July 2023 by 9.6 per cent, albeit short of the monthly target of N920.43 billion by 32.8 per cent, the government’s provisional expenditure in August was N35.44 billion (2.6%) below the level in July 2023 and N473.71 billion (26.0%) short of the projected spending.

“The decline was attributed, largely, to the decline in interest payments, due to the refinancing of matured Nigeria Treasury Bills (NTBs), and FGN bonds,” the statement said.

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