Net Foreign Exchange Inflow Falls 27% 

 Net Foreign Exchange Inflow Falls 27% 

Analysis of the fourth quarter 2021 statistical bulletin of the Central Bank of Nigeria has shown that the net foreign exchange (forex) inflow into the economy fell by 27 percent, Year-onYear.

This is a drop to $52.46 billion in 2021 from $70.66 billion in 2020.

The CBN data showed that forex inflow into the economy dropped by 19 percent, YoY, to $94.3 billion in 2021 from $115.59 billion in 2020.

However, forex outflow from the economy fell by 7.3 per cent, YoY, to $41.62 billion in 2021 from $44.93 billion in 2020.

According to the CBN, forex inflows through autonomous sources fell by 28 percent, YoY, to $54.2 billion in 2021 from $75.4 billion in 2020.

Forex outflows through autonomous sources however rose by 100.7 per cent, YoY, to $5.42 billion in 2021 from $2.69 billion in 2020.

Consequently, Net forex inflow through autonomous sources fell by 33 per cent, YoY, to $48.8 billion in 2021 from $72.7 billion in 2020.

Further analysis showed that Forex inflow through the CBN stood at $40.07 billion in 2021 representing a 0.29 per cent, YoY, decline from $40.19 billion in 2020.

Forex outflows through the CBN fell by 14.2 per cent, YoY, to $36.2 billion in 2021 from $42.24 billion in 2020.

Consequently, Net Forex flows through the CBN rose by 288 per cent to $3.86 billion, from -$2.05 billion in 2020.

Analysis of CBN forex intervention in the official market showed that sales at the I&E window rose by 76.9 per cent to $4.6 billion in 2021 from $2.6 billion in 2020.

Forex sales at Secondary Market Intervention Sales (SMIS) stood at $7.17 billion in 2021 representing a 5.4 per cent, YoY, increase when compared with $6.8 billion in 2020.

However, Forex sales at the Small and Medium Enterprises (SMEs) rose by 30 per cent, YoY, to $1.54 billion from $1.18 billion in 2020.

Kehinde Ogunyale

Freelance Investigative and Data Journalist

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