The Central Bank of Nigeria has reported a significant increase in foreign exchange inflow into the country in February 2024.
The increase is attributed to substantial remittance payments by Nigerians overseas and purchases of naira assets by foreign portfolio investors.
The apex bank’s Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, made this known in a statement made available to the media.
Sidi-Ali noted that the bank’s data indicates that overseas remittances rose to $1.3 billion in February 2024, more than four times the $300 million received in January.
She added that foreign investors purchased more than $1 billion of Nigerian assets last month, with total portfolio flows of at least $2.3 billion recorded thus far in 2024 compared to $3.9 billion seen in total for last year.
According to Sidi-Ali, higher FX inflows continued in March 2024, driven by increased investor interest in short-term sovereign debt following the recent adjustment to benchmark interest rates.
She noted that government securities issuances had been significantly oversubscribed, with foreign investors accounting for over 75% of bids received at the auctions conducted on March 1 and 6, 2024.
Sidi-Ali recalled that the CBN Governor, Olayemi Cardoso set out a detailed strategy to curb inflation, stabilise the exchange rate, and spur confidence in the banking system and economy, using last month’s Monetary Policy Committee meeting and 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.
