Net forex inflow down nearly 3% in Q3 2024 but up on Q3 2023
By Jeph Ajobaju, Chief Copy Editor
Net foreign exchange (forex) inflow dipped 2.97 per cent to $14.46 billion in the third quarter of the year (Q3 2024) from $14.89 billion in Q2 2024, according to newly published Central Bank of Nigeria (CBN) Q3 economic report.
The report said, however, year-on-year, the net inflow rose 75.91 per cent from $8.22 billion in Q3 2023.
It explained that “Inflows through the bank rose by 39.63 per cent to $11.86 billion from $8.49 billion, while autonomous sources fell by 19.66 per cent to $11.03 billion from $13.72 billion in the preceding quarter.
“Foreign exchange outflow through the economy rose by 15.18 per cent to $8.43 billion, relative to the level in Q2 2024. Outflows through the bank rose by 27.91 per cent to $7.31 billion, while those through autonomous sources decreased by 30.06 per cent to $1.12 billion.
“Consequently, net foreign exchange inflow through the economy decreased by 2.97 per cent to $14.46 billion, from $14.89 billion in the preceding quarter. However, net inflow through autonomous sources fell to $9.90 billion from $12.12billion in the preceding quarter.
“A net inflow of $4.55 billion was recorded through the bank compared with a net outflow of $2.78billion in the preceding quarter.”
In Q3 2024, average exchange rate at the Nigerian Autonomous Foreign Exchange Market depreciated 14.62 per cent to N1,588.64/$ from N1,385.96/$ in Q2 2024, stoked by demand pressure.
And external reserves increased to $39.29 billion in Q3 from $34.76 billion in Q2, enough to cover 8.91 months of imports for goods and services or 13.34 months for goods only, the report added.
CBN Governor Olayemi Cardoso disclosed at a recent meeting with the Senate Committee on Banking, Insurance, and Other Financial Institutions that diaspora remittances processed through International Money Transfer Operators between January and October 2024 (M10 2024) amounted to $4.22 billion.
The figure is nearly double the $2.62 billion recorded in M10 2023, he said, adding that remittances increased from $336 million in September 2024 to $402 million in October 2024.
He attributed the surge to improved efficiency in the remittance system, favourable effects of government policies, and growing trust among diaspora Nigerians to support national development back home.
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