Forex inflow falls by 37% to $4.36bn in one month — CBN
The foreign exchange inflows into the country fell by 36.7 per cent in one month to $4.36 billion in January, figures obtained from the Central Bank of Nigeria have shown.
The CBN revealed in its report on ‘Foreign exchange flows through the economy’ that the economy recorded lower net foreign exchange inflow in January, driven, mainly, by net flows from the CBN and autonomous sources.
It stated that, “Aggregate foreign exchange inflow into the economy declined by 36.7 per cent to $4.36 billion in January 2022, from $6.89 billion in December 2021.
“The total foreign exchange outflow decreased by 5.1 per cent to $3.41 billion, from $3.59 billion in the preceding period. A net inflow of $0.95 billion was recorded in the month under review, compared with net inflow of $3.29 billion in the preceding period.
“Further analysis shows that foreign exchange inflow into the Bank fell by 36.7 per cent to $1.82 billion from $2.88 billion, attributed to 45.4 per cent decline in non-oil components, mainly, TSA and third-party receipts/MDA transfers, other official receipts and swaps.”
According to the report, autonomous inflow also decreased by 36.7 per cent to $2.54 biilion, from $4.01 billion, due to reduction in invisible purchases.
Foreign exchange outflow through the bank fell by 18.3 per cent to $2.6 billion from $3.18 billion in December 2021, due, largely, to decrease in public sector/direct payment, third party MDA transfers, sales at the secondary market intervention and the Investors & Exporters’ windows.
Autonomous outflow, however, rose to $0.81 billion, from $0.42 billion in January, on account of higher invisible imports.
The report disclosed that foreign exchange inflows into the economy declined in the fourth quarter of 2021, owing to lower receipts from the CBN and autonomous sources.
It stated, “Foreign exchange inflow into the economy fell by 31.7 per cent to $20.62 billion, from $30.2 billion in the preceding period. The development was driven by the 45.5 per cent and 14.4 per cent lower inflow through the CBN and the autonomous sources, respectively.
“Foreign exchange inflow through the Bank at $9.18 billion fell below the $16.83 billion in the preceding quarter as both oil and non-oil receipts declined, as a result of lower receipts from interest on reserves and interbank swaps.”
A disaggregation showed that proceeds from oil-related sources declined by 12.2 per cent in the fourth quarter of 2021 to $1.63 billion, relative to the preceding period.
Similarly, receipts from non-oil sources fell to $7.54 billion, compared with $14.97 billion in the preceding quarter.
