Forex Inflow Into Economy Rises 7.5% In November, Says CBN
UMORU ABDULKADIR
The Central Bank of Nigeria (CBN) has said in its recently released 2019 November Economic Report that the aggregate foreign exchange inflow into the nation’s economy rose to US$9.84 billion, showing an increase of 7.5 per cent above the level at the end of the preceding month but recorded a 21.1 per cent decline relative to the level at the end of the corresponding period of 2018.
The CBN stated that the increase was as a result of 5.8 per cent and 8.5 per cent rise in inflow through the Bank and autonomous sources, respectively.
In contrast, it said the, aggregate foreign exchange outflow from the economy which stood at US$4.70 billion, depreciated by 12.2 per cent and 21.3 per cent, below the levels in the preceding month and the corresponding period of 2018, respectively, largely due to the 12.9 per cent decline in outflow through the Bank.
During the period, Inflow through autonomous sources grew by 8.5 per cent to US$6.12 billion, above the level at end of October 2019 while the outflow from autonomous sources, on a month-on-month basis, fell by 3.9 per cent to US$0.39 billion, reflecting a decline in invisible and visible imports.
Consequently, foreign exchange flows through the economy, resulted in a net inflow of US$5.14 billion in the review period, compared with US$3.81 billion and US$6.51 billion at the end of October 2019 and end of November 2018, respectively.
Affirming the improved performance of the country’s external sector during the period under review, the CBN said, “The external sector performance improved in the review month, due to increase in the international price of crude oil by 7.5 per cent to US$63.56 per barrel resulting in 5.8 per cent rise in aggregate foreign exchange inflow into the CBN, at US$3.72 billion, above the level in the preceding month due to the rise in both oil and non-oil receipts.”
“When compared to the foreign exchange inflow into the CBN in the corresponding period of 2018, it showed a decrease of 53.0 per cent,” the apex bank said.
Conversely, the aggregate outflow of foreign exchange from the Bank in the period fell by 12.9 per cent and 17.3 per cent to US$4.31 billion, below the levels at the end of the preceding month and the corresponding period of 2018, respectively, attributing the development mainly to 10.4 per cent and 18.4 per cent decline in interbank utilisation and other official payments.
“Overall, foreign exchange flows, through the Bank at end-November 2019, resulted in a net outflow of US$0.59 billion, compared with a net outflow of US$1.43 billion in the preceding month. It, however, recorded a net inflow of US$2.71 billion, when compared with the level in the corresponding period of 2018. Aggregate foreign exchange inflow into the economy amounted to US$9.84 billion, showing an increase of 7.5 per cent above the level at the end of the preceding month. It, however, showed a decrease of 21.1 per cent relative to the level at the end of the corresponding period of 2018. The increase was as a result of 5.8 per cent and 8.5 per cent rise in inflow through the Bank and autonomous sources, respectively.”
Comments are closed.