Nigeria’s Forex Inflow Surges as Remittances Quadruple to $1.3 Billion
Sidi revealed that the apex bank’s data indicates that overseas remittances surged to $1.3 billion in February, representing more than a fourfold increase compared to the $300 million received in January. Additionally, foreign investors injected over $1 billion into Nigerian assets last month alone, contributing to a total portfolio flow of at least $2.3 billion recorded thus far in 2024. This figure surpasses the $3.9 billion seen in total for the previous year.
The trend of higher forex inflows has continued into March, fueled by heightened investor interest in short-term sovereign debt following recent adjustments to benchmark interest rates. Government securities issuances have seen significant oversubscription, with foreign investors accounting for over 75% of bids received at auctions conducted on March 1 and 6.
The CBN’s Governor, Yemi Cardoso, outlined a detailed strategy during the last Monetary Policy Committee meeting in February, focusing on inflation targeting, exchange rate stabilization, and initiatives to enhance confidence in the banking system and economy. Cardoso’s proactive engagement with foreign portfolio investors aimed to set expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.
Commenting on the positive outcomes, Cardoso emphasized the effectiveness of the measures implemented, highlighting the importance of understanding the real issues and having a clear strategy and plan in place. He reiterated the CBN’s commitment to ensuring market functionality, liquidity, and investor confidence.
In conclusion, the surge in forex inflows reflects growing investor confidence and a strategic approach towards market stability and growth in Nigeria’s economy.
