CBN’s forex policies drive record surge in diaspora remittances to $553m
By Esther Agbo
The Central Bank of Nigeria (CBN) has reported a remarkable surge in diaspora remittances, with inflows reaching an unprecedented $553 million in July 2024.
This figure marks a 130 percent year-on-year increase from July 2023, showcasing the impact of the apex bank’s recent strategic interventions in the foreign exchange market.
In a statement issued by the Acting Director of Corporate Communication, Mrs. Hakama Sidi Ali, the CBN attributed this dramatic growth to its newly implemented policies aimed at bolstering liquidity in Nigeria’s forex market.
These measures include the licensing of new International Money Transfer Operators (IMTOs), the introduction of a willing buyer-willing seller exchange rate model, and improved access to naira liquidity for IMTOs.
The CBN emphasised that these inflows, now at their highest recorded monthly level, underscore the importance of diaspora remittances as a key source of foreign exchange for Nigeria.
This significant boost in remittance receipts not only supports foreign direct investment but also complements the nation’s overall economic growth strategy.
This surge in remittances also coincides with a notable slowdown in Nigeria’s year-on-year headline inflation rate, as reported by the National Bureau of Statistics (NBS) for July 2024.
This marks the first reduction in inflation in 19 months, further suggesting that the CBN’s tightening of monetary policy is beginning to yield positive results.
“The CBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year.
“The increase in remittances is a strong testament to the success of the CBN’s ongoing efforts to bolster public confidence in the foreign exchange market, strengthen robust and inclusive banking system,and promote price stability,which is essential for sustained economic growth.
“Recent data from the National Bureau of Statistics (NBS) revealed that Nigeria’s year-on- year headline inflation rate slowed in July 2024, for the first time in 19 months-a clear indication that the CBN’s monetary policy tightening measures are delivering results.
“The CBN anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market.
“The Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria,” the CBN noted.
