An unprecedented dollar scarcity in Nigeria has spiked the prices of airfares and forced some airlines to stop operating in Nigeria.
Also, a serious exchange rate is rocking the nation. But we have received reports of high foreign exchange inflows are emerging.
Nigeria recorded $10.7 billion aggregate foreign exchange inflow into its economy in April and May. This is according to figures obtained from the Central Bank of Nigeria (CBN) have revealed.
This figure was issued by the CBN in its May economic report on foreign exchange flows through the economy. It was released last week.
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According to the report, the economy recorded a higher net foreign exchange inflow in May relative to the preceding month.
It stated that, “foreign exchange flow through the economy recorded a net inflow of $3.59 billion, compared with $2.02 billion in the preceding period.
“Aggregate foreign exchange inflow into the economy increased by 29.1% to $6.03 billion, from $4.67 billion in the preceding month.
“However, foreign exchange outflow fell by 8.2% to $2.44 billion from $2.65 billion in the preceding month”.
Autonomous FX Inflow/Outflows
According to the CBN, foreign exchange inflows through the Bank decreased by 27.9% to $1.70 billion, from $2.36 billion in April.
Outflow through the Bank fell by 15.2% to $2.03 billion, from $2.39 billion in April.
“As such, the CBN recorded a net outflow of $0.33 billion, compared with a net outflow of $0.03 billion in the preceding month,” the report said.
It added that autonomous inflow increased by 87.2% to $4.33 billion from $2.31 billion in the preceding month.
Similarly, autonomous outflow increased to $0.41 billion from $0.26 billion in April.
Consequently, a net inflow of $3.92 billion was recorded, compared with $2.05 billion in April.
The Autonomous FX market, according to FMDQ, comprises recognised FX trading segments. Also, it includes but not limited to the Inter-bank market.
Furthermore, in the mix is the I&E FX window and any such approved and recognised trading segment as may be defined.
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Data from the economic report of the CBN showed that net FX inflow of US$3.92 billion was recorded in the autonomous market, compared with US$2.05 billion in April.
According to the report, autonomous inflow increased by 87.2% to $4.33 billion. This is for the month under review from $2.31 billion in the preceding month.
Similarly, autonomous outflow increased to $0.41 billion from $0.26 billion in April.
Muda Yusuf, director/chief executive officer of the Centre for the Promotion of Private Enterprise, said autonomous inflows come outside the government’s earnings of FX.
Also, these inflows come from private sources unlike remittances that come from oil, being Nigeria’s major source of FX.
