Capital inflow grows 64% in Q3 2021
By Jeph Ajobaju, Chief Copy Editor
Capital inflow rose 64 per cent to $30.18 billion in the third quarter of 2021 (Q3 2021) against $18.4 billion in Q2 2021 because of new loans obtained by Nigeria whose debt stock in a source of concern to citizens.
The latest Central Bank of Nigeria (CBN) bulletin shows inflow of $30.18 billion is the highest quarterly figure since Q1 2020, before the pandemic.
The inflow jumped 14 per cent year-on-year (YoY) compared with $26.47 billion Q3 2020.
Abuja secured two external loans in Q3 2021 worth $7.34 billion, broken down as $3.34 billion IMF Special Drawing Rights (SDRs) in August and $4 billion Eurobond in September 2021, per Nairametrics.
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Breakdown
- Inflows through the CBN stood at $16.83 billion, 55.8 per cent of total foreign exchange (FX or forex) inflow in Q3 2021.
- This is 158 per cent higher than the $6.51 billion inflow in Q2 2021 and 141 per cent above $6.98 billion in Q3 2020.
- A total $13.35 billion inflows from autonomous sources accounted for 44.2 per cent of the total. They totalled $11.89 billion in Q2 2021.
- Inflows through autonomous sources declined 32 per cent in Q3 2021 compared with $19.49 billion in Q3 2020.
- Autonomous sources of FX include non-oil exports, capital inflows, and invisibles. Indivisibles include capital importations, remittances, and other over the counter (OTC) purchases.
Increase in forex inflows can also be attributed to the significant increase in flows through the Treasury Single Account (TSA) and Third Part Funds in September 2021.
Funds through TSA and Third Party Funds grew by over 600 per cent to $2.47 billion in September while $3.2 billion was recorded in Q3 2021, accounting for 11 per cent of total inflows.
The CBN continues to intervene in the official forex market, following the ban on bureau du change (BDC) operators.
A total $32 billion changed hands in the official window while the CBN supplied $13.16 million to the market between January and September 2021.
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