Net Forex Inflows Surge To $46.92bn — CBN

Data from the Central Bank of Nigeria (CBN) has shown a significant increase in net foreign exchange (FX) inflows, which rose by 65.7 percent year-on-year (YoY) to reach $46.92 billion in the first ten months of 2024 (10m’24), compared to $28.31 billion during the same period in 2023.

According to the CBN’s Economic Report for the period, the total foreign exchange inflows into Nigeria’s economy increased by 41 percent YoY, amounting to $79.8 billion in 10m’24, up from $55.57 billion in 10m’23.

Forex outflows from the economy, however, saw a slight decline of 1.4 percent YoY, dropping to $29.84 billion in 10m’24 from $30.29 billion in 10m’23.

Key Highlights:

• Autonomous Forex Sources: Inflows through autonomous sources rose marginally by 0.06 percent YoY, totaling $35.82 billion in 10m’24, compared to $34.4 billion in 10m’23. However, outflows from these sources surged by 195 percent YoY, reaching $7.08 billion in 10m’24, up from $2.4 billion in the same period of 2023. As a result, net forex inflows from autonomous sources saw a 73 percent increase, totaling $39.7 billion in 10m’24, compared to $22.93 billion the previous year.
• CBN Forex Transactions: The CBN’s forex inflows grew by 55 percent YoY, amounting to $32.94 billion in 10m’24, compared to $21.25 billion in 10m’23. On the other hand, CBN forex outflows slightly decreased by 1.11 percent, falling to $25.74 billion from $26.03 billion in the same period of 2023. This resulted in a massive 556.8 percent YoY increase in net forex inflow through the CBN, which skyrocketed to $7.16 billion in 10m’24, compared to a negative $1.09 billion in 10m’23.

The CBN’s report for October 2024 highlighted a slight month-on-month decline in net forex inflows, driven by reduced inflows through the bank. Aggregate forex inflows in October 2024 amounted to $9.15 billion, up from $8.59 billion in September, while outflows increased to $4.29 billion, compared to $2.24 billion in the preceding month.

• Month-on-Month Changes (October 2024):
  • Inflows through the CBN declined to $4.48 billion from $5.22 billion in September 2024.
  • Autonomous inflows rose to $4.67 billion, up from $3.37 billion in the preceding month.
  • CBN outflows increased to $3.73 billion from $1.84 billion, while autonomous outflows slightly increased to $0.56 billion from $0.40 billion in September 2024.

Consequently, net inflows from autonomous sources increased to $4.11 billion in October, up from $2.97 billion in September, while the CBN recorded a net inflow of $0.75 billion, compared to a net outflow of $3.38 billion the previous month.