BREAKING: CBN Data Shows Foreign Exchange Inflow in Nigeria in 2024, Naira Affected

The net FX inflow to the Nigerian economy in Q3 of 2024 declined by 2.97% to $14.46 billion from $14.89 billion in the preceding quarter.

The development is according to CBN’s data released on Friday, December 19, 2024.

Nigeria experiences a decline in FX inflow

Every quarter, net forex exchange declined by 2.97% in the third quarter, but relative to the same period in 2023, net FX inflow declined by 75.91%, from $8.22 billion to $14.46 billion.

In the same quarter, FX inflow reduced by 3.01% to $22.89 billion from $22.22 billion in Q2 of this year.

Also, inflows via official sources rose in the third quarter as autonomous sources declined.

According to Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), during a recent outing, diaspora remittances via International Money Transfer Operators between January and October 2024 hit $4.22 billion.

Diaspora remittances surge in 2024

Legit.ng reported that the figure is almost double the one recorded in 2023.

The CBN chief added that remittances rose monthly, from $336 million in September 2024 to $402 million in October 2024.

Cardoso attributed the rise to improved efficiency in the remittance mechanism, favourable government policies, and the growing confidence among Nigerians in the diaspora in the economy.

Naira impacted severely

Data shows that in the same quarter, the average exchange rate at the foreign exchange market dropped by 14.62% to N1,588.64 per dollar from N1,385 per dollar in the second quarter of 2024 due to increased pressure.

The external reserves rose to $39.29 billion in September 2024.

That level of reserves could cover over eight months of imports for goods and services or 13.34 months for goods only.

Naira gains over N147 against the US dollar

Legit.ng earlier reported that the transparency in the newly introduced Electronic Foreign Exchange Matching System (EFEMS) had spurred the demand for the naira.

The new platform by the CBN has resulted in currency speculators and illegal FX operators sourcing FX elsewhere.

Traders and buyers who cannot meet the new platform’s requirements have opted for the black market, boosting the local currency’s value.