Central Bank of Nigeria (CBN) has announced a significant increase in net foreign exchange flows, rising to $25.4 billion in the first six months of 2024.
Gatekeepers News reports that this represents a 55% year-over-year increase, according to a statement released by the apex bank.
The CBN attributed this growth to a rise in capital importation, which reached $6 billion in June 2024, and record inflows from diaspora remittances through formal channels. The bank noted that its policy objectives yield tangible results and bolster market confidence.
Also, the CBN, in its bid to enhance liquidity in the interbank market, sold over $305 million of foreign exchange to authorised dealers in the last three weeks through a two-way quote system.
The bank also offered $876 million to meet bids submitted by customers during an auction concluded on Wednesday, August 7, 2024, through the Retail Dutch Auction System (RDAS).
The CBN emphasised its commitment to fostering a transparent, market-driven foreign exchange environment and will continue to strengthen the market’s capacity to meet the needs of all legitimate participants. This ongoing effort is expected to further bolster market confidence and support the overall stability of the Nigerian economy.
The FX market is showing signs of improvement and increased depth, with more robust and diversified sources of liquidity contributing to the sustained convergence of exchange rates across all market segments.
The official market recorded a turnover of $43 billion in customer transactions by the end of July 2024, with CBN-supplied liquidity representing less than 5% of total market activities.
