Net Forex inflow falls 47% to $25bn

Net foreign exchange, forex, inflow to the economy fell 47 per cent, year-on-year, YoY, to $25.05 billion in 10 months to end of October last year.

The decline was driven by a 27 per cent fall in forex inflow into the economy as well as a 1.4 per cent increase in forex outflow into the economy during the period.

Financial Vanguard findings from the recent monthly economic reports of the Central Bank of Nigeria, CBN, showed that forex inflow into the economy dropped to $59.13 billion in 10 months, 10M’22, to October, from $80.75 billion in the corresponding period of 2021, 10M’21, representing 27 per cent, YoY decline.

Moreover, forex outflow from the economy rose by 1.4 per cent, YoY to $34.08 billion in 10M’22 from $33.59 billion in 10M’21.

Consequently net forex inflow into the economy dropped to $25.05 billion in 10M’22 from $47.18 billion in 10M’21, representing a 47 per cent decline.

Following the same trend, net forex inflow fell month-on-month, MoM by 6.5 per cent to $1.87 billion in October 2022 from $2 billion in the preceding month of September 2022.

Disclosing these figures in its monthly economic report for October released last week, the CBN said: “The economy recorded a lower net foreign exchange inflow, driven majorly, by decreased inflow through the Bank and autonomous sources.

“Aggregate foreign exchange inflow into the economy declined by 14.5 per cent to US$4.21 billion in October, from US$4.93 billion in September.

“Similarly, foreign exchange outflow through the economy decreased by 19.9 per cent to US$2.34 billion in October, from US$2.92 billion in the previous month. This resulted in a lower net inflow of US$1.87 billion in October 2022, compared with US$2.00 billion in the preceding month.”