The Central Bank of Nigeria (CBN), in its latest Economic Report, revealed significant changes in foreign exchange (forex) flows within the economy for the first 10 months of 2024 (10m’24).
According to the report, aggregate forex inflows rose by 41% year-on-year (YoY) to $79.8 billion in 10m’24, up from $55.57 billion in the same period of 2023. In contrast, forex outflows experienced a slight decline, dropping by 1.4% YoY to $29.84 billion from $30.29 billion in 2023.
Autonomous Sources Drive Growth
A deeper analysis showed that forex inflows through autonomous sources increased marginally by 0.06% YoY to $35.82 billion in 10m’24, compared to $34.4 billion in 10m’23. Outflows through these autonomous sources surged significantly, rising by 195% YoY to $7.08 billion from $2.4 billion in 2023.
As a result, net forex inflow via autonomous channels rose by 73% YoY to $39.7 billion, up from $22.93 billion recorded in the previous year.
CBN’s Contribution to Forex Inflows
Forex inflows through the CBN increased substantially, climbing by 55% YoY to $32.94 billion in 10m’24, compared to $21.25 billion in the corresponding period of 2023. However, the CBN’s forex outflows slightly declined by 1.11% YoY to $25.74 billion from $26.03 billion in 10m’23.
Consequently, the CBN’s net forex inflow saw an extraordinary increase, surging by 556.8% YoY to $7.16 billion in 10m’24, a significant recovery from a net outflow of -$1.09 billion in 10m’23.
October 2024 Insights
In its October 2024 Economic Report, the CBN noted a month-on-month (MoM) decline in net forex inflows, which dropped to $4.86 billion from $6.35 billion in September 2024. This was attributed to reduced inflows through the bank.
The report detailed:
Aggregate forex inflows rose to $9.15 billion in October, up from $8.59 billion in September.
Forex outflows increased to $4.29 billion, compared to $2.24 billion the previous month.
Inflows through the CBN dropped to $4.48 billion from $5.22 billion in September, while autonomous inflows grew to $4.67 billion from $3.37 billion.
CBN outflows surged to $3.73 billion from $1.84 billion, while autonomous outflows declined to $0.56 billion from $0.40 billion.
As a result, net inflow through autonomous sources rose to $4.11 billion in October, compared to $2.97 billion in September. Meanwhile, the CBN recorded a net inflow of $0.75 billion, down from $3.38 billion in the preceding month.
The CBN’s report underscores shifting dynamics in Nigeria’s forex market, highlighting both opportunities and challenges as the economy continues to adapt to global and local pressures.
