In the midst of the hardship and struggles of Nigerians as a result of economic reforms, the nation’s foreign exchange, Forex inflow increased by 3.01 per cent to $22.89 billion in Q3 2024.
This is according to a report by the Central Bank Of Nigeria.
However, autonomous inflows declined by 19.66 per cent, highlighting mixed trends in the FX market.
The CBN’s Economic Report says the rise was from a $22.22 billion in Q2.
Notably, the CBN’s share of these inflows surged by 39.63% to $11.86 billion, up from $8.49 billion.
However, inflows from autonomous sources declined by 19.66% to $11.03 billion.
Meanwhile, foreign exchange outflows also grew, increasing by 15.18% to $8.43 billion.
Specifically, outflows through the CBN jumped 27.91%, whereas those from autonomous sources fell by 30.06%.
As a result, the net FX inflow for the quarter stood at $14.5 billion.
Read Also; Nigeria Oil Licence Bids Tied To Low Carbon Proof, Nigerian Regulator Says
According to analysts at FBNQuest, this growth can be attributed to the CBN’s contractionary monetary policy, which has successfully attracted offshore investments and improved liquidity.
Furthermore, during its November 2024 Monetary Policy Committee meeting, the CBN raised the monetary policy rate by 25 basis points to 25.70%, further bolstering investor confidence.
In addition, Nigeria’s gross official reserves increased significantly, reaching $40.2 billion in November, up from $446.9 million in October.
Year-to-date, reserves have grown by $7.9 billion, reflecting sustained Forex inflow and effective reserve management.
Nevertheless, analysts emphasised the need for sustainable inflows through higher crude oil production, increased foreign direct investment, and diaspora remittances.
Moreover, they highlighted the importance of economic diversification to reduce reliance on oil revenues and mitigate external shocks.
Overall, the CBN’s strategic interventions and sound reserve management continue to shape Nigeria’s economic outlook amidst global and domestic challenges.
