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CBN reports increased forex inflow as remittances quadruple to $1.3bn in Feb



The Central Bank of Nigeria (CBN) has reported a significant increase in foreign exchange inflow into the economy in February.

Acting Director, Corporate Communications Department of the CBN, Mrs Hakama Sidi, said this in a statement on Friday in Abuja.

Sidi said that the upsurge in forex inflow was recorded with marked increments in remittance payments by Nigerians overseas and purchases of naira assets by foreign portfolio investors.

According to her, the apex bank’s data indicates that overseas remittances rose to 1.3 billion dollars in February, more than four times the 300 million dollars received in January.

“Foreign investors purchased more than one billion dollars of Nigerian assets last month, with total portfolio flows of at least 2.3 billion dollars recorded thus far in 2024 compared to 3.9 billion dollars seen in total for last year,” she said.

She said that higher forex inflows has continued in March, driven by increased investor interest in short-term sovereign debt following the recent adjustment to benchmark interest rates.

She said that government securities issuances had been significantly oversubscribed, with foreign investors accounting for over 75 per cent of bids received at the auctions conducted on March 1 and 6.

NEWSVERGE recalls that the CBN Governor, Mr Yemi Cardoso set out a detailed inflation-targeting strategy, using the last Monetary Policy Committee meeting in February.

Cardoso also targeted exchange rate stabilisation, and strategies to spur confidence in the banking system and economy.

He held a conference call with foreign portfolio investors to set expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.

According to him, all the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off.

“When people understand the real issues and see a strategy and a plan, things tend to calm down.

“Our objective today is to ensure that the market has supply, that the market functions, and that investors can come in and go out,” he said.

Kadiri Abdulrahman

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective. A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour. The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.



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