Why Nigeria’s Foreign Exchange Inflow Dropped
The amount of foreign exchange – dollars, pounds, euro, yuan – flowing into Nigeria is dropping.
For instance, the Nigerian economy recorded a total foreign exchange inflow of $6 billion in the month of July this year, according to figures from the Central Bank of Nigeria, CBN.
But that inflow of $6 billion when compared with the $9.73 billion recorded in June this year represents a decline of $3.73 billion.
The $3.73 billion based on analysis represents a 38.34% decline during the period.
But the CBN has an explanation for this drop.
According to the apex bank, the inflow was recorded because of the continued stability in the foreign exchange market.
This, the CBN stated, was promoted by improved dollar liquidity at the Investors and Exporters’ window of the market.
The development, according to the findings, has been driving the exchange rates towards convergence at all segments of the market.
Findings revealed that the relative stability in both the Investors and Exporters’ window of the foreign exchange market was sustained by autonomous inflows during the period.
It was gathered that the CBN had also taken measures to deepen the foreign exchange market and curb speculative practices.