The Central Bank of Nigeria (CBN) has announced a remarkable 55% year-over-year increase in net foreign exchange flows, reaching $25.4 billion between January and June 2024. This growth is attributed to a surge in capital importation, which peaked at $6 billion in June 2024, and record-breaking inflows from diaspora remittances through formal channels.
According to the CBN, this upward trend is a testament to the effectiveness of its policy measures, which have bolstered market confidence and enhanced liquidity in the interbank market. In the last three weeks alone, the CBN has sold over $305 million of foreign exchange to authorized dealers through a two-way quote system.
Furthermore, the CBN offered $876 million to meet customer bids during an auction held on August 7, 2024. This move demonstrates the bank’s commitment to ensuring a stable and accessible foreign exchange market.
The significant increase in net FX flows is a positive indicator of Nigeria’s economic growth and stability, and the CBN’s efforts to attract foreign investment and promote economic development.
