Nigeria recorded a total foreign exchange (FX) inflow of approximately $24 billion in the first quarter of 2024, according to Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN).
Cardoso made this announcement during an interview with Bloomberg TV on Tuesday in London.
Cardoso highlighted that the monetary policy tools employed by the apex bank have positively impacted the FX market. He noted that the surge in FX liquidity in Q1 2024 represents the highest quarterly inflow since 2021.
“In terms of liquidity, especially on the foreign exchange side, we’ve seen an increase. The first quarter of this year has resulted in a total inflow of about $24 billion.
Now, this is almost about 40 to 50% more than the quarters up to about 2021,” Cardoso stated. “Clearly, the tools are having a positive impact. So we believe that, continuing on this trajectory, liquidity will continue to grow.”
Additionally, Cardoso mentioned that the CBN has established a committee to facilitate the increased inflow of diaspora funds into the official FX market. This committee reports directly to him and aims to double the inflow of foreign exchange from international monetary operations (IMTO).
“We’ve had a recognition of the huge role Nigerian diasporans play in remitting tremendous amounts of money into the system over a period of time. We set up a committee which reports directly to me with the goal of doubling the amount of foreign exchange inflow coming from the IMTO who service that segment of autonomous players,” Cardoso explained. “Already, it’s beginning to bring about results. Again, we are confident that with these kinds of measures, liquidity will increase in our market.”
The increase in diaspora inflows and the positive impact of the CBN’s monetary policies are expected to further enhance FX liquidity in Nigeria.
