Currency inflow drops 37% to $4.36 billion in one month, CBN says

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the Foreign exchange inflows into the country fell 36.7% in one month to $4.36 billion in January, according to figures obtained from the Central Bank of Nigeria.

The CBN revealed in its “Foreign Exchange Flows into the Economy” report that the economy recorded a decline in net foreign exchange inflows in January, mainly due to net flows from the CBN and autonomous sources.

He said that “Total currency inflow into the economy decreased by 36.7% to $4.36 billion in January 2022 from $6.89 billion in December 2021.

“Total foreign exchange outflows decreased by 5.1% to $3.41 billion from $3.59 billion in the prior period. A net inflow of $0.95 billion was recorded during of the month under review, against a net inflow of 3.29 billion dollars during the previous period.

“Further analysis shows that foreign exchange inflows to the Bank fell 36.7% to $1.82 billion from $2.88 billion, attributed to a 45.4% decline in non-oil components, primarily TSA and third-party/MDA transfers, other official receipts, and exchanges.

According to the report, standalone entries also fell 36.7% to $2.54 billion from $4.01 billion, due to the reduction in invisible purchases.

Foreign exchange outflows through the bank decreased 18.3% to $2.6 billion from $3.18 billion in December 2021, largely due to decrease in public sector/direct payments, MDA transfers to third parties, secondary market intervention sales and investors and exporters. ‘ the Windows.

Autonomous releases, however, reached $0.81 billion, compared to $0.42 billion in January, due to higher invisible imports.

The report revealed that foreign exchange inflows into the economy declined in the fourth quarter of 2021, due to lower revenue from CBN and autonomous sources.

He said: “Currency inflows into the economy fell 31.7% to $20.62 billion from $30.2 billion in the previous period. This development was spurred by the 45.5% and 14.4% drop in entries via CBN and standalone sources, respectively.

“Foreign exchange inflows by the Bank at $9.18 billion fell below the $16.83 billion of the previous quarter, as oil and non-oil revenues declined, due to lower income from interest on reserves and interbank swaps.”

A disaggregation showed that revenue from oil-related sources fell 12.2% in the fourth quarter of 2021 to $1.63 billion, compared to the previous period.

Similarly, revenue from non-oil sources fell to $7.54 billion from $14.97 billion in the previous quarter.

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