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The Central Bank of Nigeria has revealed that capital imports and diaspora remittances have boosted net foreign exchange inflows into the country which have increased to $25.4 billion in the first six months of 2024.
This marks a 55 percent increase from the figures recorded year-on-year.
The central bank noted that these developments were evidence that progress was being made as a result of its policy measures.
According to a statement from the central bank on Thursday, this growth was driven by an increase in capital imports, which reached $6 billion in June 2024, and record inflows from diaspora remittances through formal channels.
The statement read, “The CBN’s policy objectives are yielding tangible results and strengthening market confidence. Net foreign exchange flows increased to $25.4 billion between January and June, marking a 55 percent year-on-year increase.
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“This growth was driven by increased capital imports, which reached $6 billion in June 2024, and record inflows of diaspora remittances through formal channels.”
The CBN further noted that over $305 million in foreign exchange was sold to authorized dealers in the past three weeks through the two-way quotation system, which has been implemented over the past few months to boost liquidity in the interbank market.
According to the statement, CBN offered $876 million to meet the bids submitted by customers during the auction which closed on Wednesday, August 7, 2024.
This is done through the Dutch Retail Auction System, which is designed to facilitate the sale of foreign exchange directly to end users, encourage more transparent markets, reduce information asymmetries and assist in price discovery.
By: Babajide Okeowo
Capital imports, diaspora remittances boost forex flows by 55% in six months —CBN first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.
