Foreign Exchange inflows into the nation’s economy increased to $7.39 billion from $6.68 billion reported the preceding month.
The Central Bank of Nigeria economic report for the month of August released recently showed a growth of 10.6 per cent over the level in the preceding month, but a decline by 24.6 per cent in the corresponding month of 2019.
Apex Bank said that the increase in forex inflows was mainly attributed to enhanced foreign exchange earnings from non-oil receipts.
On the other hand, foreign exchange outflows through the economy, driven, largely, by outflows through the CBN, rose by 15.0 per cent to $2.83 billion in the review period, over the level in the preceding month, but declined by 58.7 per cent below that in the corresponding period of 2019.
The development, relative to the preceding month was due mainly, to the increased tempo in economic activities as a result of the gradual opening of land and air borders globally.
Consequently, foreign exchange transactions through the economy resulted in a net inflow of $4.56 billion, an increase of 8.0 per cent and 54.8 per cent, compared with the net inflow of $4.22 billion and $2.95 billion in billion in the preceding month and corresponding month of 2019, respectively.
The report further showed that aggregate foreign exchange inflow through the Central Bank of Nigeria stood at $2.58 billion, an increase of 30.3 per cent above the level in the preceding month, but a decline of 25.5 per cent below the corresponding month of 2019.
The apex regulator said that the growth level was as a result of the 48.1 per cent and 4.7 per cent increase in the non-oil and oil receipts through the Bank to $1.73 billion and $0.08 billion, respectively, in the review period. The development was due to the increased demand for oil and the opening of international borders by most countries, which led to the gradual recovery of global economic activities.
In the domestic economy, the partial relaxation of lockdown measures also impacted on economic activities positively.
A further analysis of non-oil receipts showed that inflows from Interbank/Institutional Swaps increased by 140.0 per cent to $0.60 billion, other official receipts rose by 35.0 per cent to $0.42 billion, while interest on reserves & investments amounted to $0.03 billion with a 77.3 percent increase.
Similarly, the TSA & third-party receipts and unutilised funds from foreign exchange transactions rose by 104.9 per cent and 7.7 per cent to $0.36 billion and US$0.03 billion, respectively, compared with their respective levels in the preceding month.
The report from CBN also said that aggregate forex Inflow through autonomous sources amounted to $4.82 billion, indicating an increase of 2.4 per cent, but a decrease of 24.1 per cent, compared with the levels in July 2020 and the corresponding month of 2019, respectively. This accounted for 65.2 per cent of the total sources inflow through the economy. Other sources of foreign exchange inflows through autonomous sources included external accounts purchase, $0.006 billion and invisible purchases, $4.59 billion.