Diaspora remittances up from $300 to $1.3b in February
By Jeph Ajobaju, Chief Copy Editor
Diaspora remittances rose from $300 in January to $1.3 billion in February, says the Central Bank of Nigeria (CBN), a 433 per cent increase that raises hope of more dollar inflows to lift the economy amid hunger across the country.
“The Bank’s data indicates that overseas remittances rose to US$1.3 billion in February 2024, more than four times the US$300 million received in January,” CBN acting Director of Corporate Communications Hakama Ali disclosed in Abuja.
“Foreign investors purchased more than US$1 billion of Nigerian assets last month, with total portfolio flows of at least US$2.3 billion recorded thus far in 2024 compared to US$ 3.9 billion seen in total for last year.”
Ali stressed higher foreign exchange (FX or forex) inflows have continued in March 2024, driven by increased investor interest in short-term sovereign debt following the recent adjustment to benchmark interest rates.
She added government securities issuances have been significantly oversubscribed, with foreign investors accounting for more than 75 per cent of bids received at the auctions conducted on March 1 and 6.
CBN Governor Yemi Cardoso said he has devised a detailed strategy to curb inflation, stabilise forex rate, and spur confidence in the banking system and economy.
He used last month’s Monetary Policy Committee (MPC) meeting and a conference call with Foreign Portfolio Investors (FPI) to set expectations for sustained increases in foreign reserves and improved liquidity in the forex market.
“All the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off,” Cardoso said
“When people understand the real issues and see a strategy and a plan, things tend to calm down. Our objective today is to ensure that the market has supply, that the market functions, and that investors can come in and go out.”
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