Net FOREX Inflow Decreases By 47% to $25 Billion

Net FOREX Inflow Decreases By 47% to $25 Billion

In the ten months leading up to the end of October of last year, Net FOREX exchange, or forex, inflow to the economy decreased by 47% YoY to $25.05 billion.

The decrease was caused by an increase in forex outflow into the economy over the period of 1.4% and a decrease in forex input into the economy of 27% during that time.

According to Financial Vanguard analysis of the Central Bank of Nigeria’s most recent monthly economic reports, the amount of foreign exchange entering the economy fell to $59.13 billion in the ten months ending in October of this year from $80.75 billion in the same period in 2021, 10M’21, a decrease of 27% YoY.

Additionally, the economy’s FX outflow increased by 1.4% YoY to $34.08 billion in 10M’22 from $33.59 billion in 10M’21.

As a result, the economy’s net foreign inflow decreased by 47% to $25.05 billion in 10M’22 from $47.18 billion in 10M’21.

Following the same pattern, net forex inflow decreased month over month, MoM, by 6.5%, from $2 billion in September 2022 to $1.87 billion in October 2022.

Disclosing these figures in its monthly economic report for October released last week, the CBN said: “The economy recorded a lower net foreign exchange inflow, driven majorly, by decreased inflow through the Bank and autonomous sources.

“Aggregate foreign exchange inflow into the economy declined by 14.5 per cent to US$4.21 billion in October, from US$4.93 billion in September.

“Similarly, foreign exchange outflow through the economy decreased by 19.9 per cent to US$2.34 billion in October, from US$2.92 billion in the previous month. This resulted in a lower net inflow of US$1.87 billion in October 2022, compared with US$2.00 billion in the preceding month.”