Analysis of monthly economic reports of the Central Bank of Nigeria has shown that net foreign exchange inflow to the economy fell 54 per cent, year-on-year, YoY to $15.86 billion in eight months to the end of August.
The decline was driven by a 37 per cent fall in forex inflow into the economy which cancelled the impact of 15.3 per cent fall in forex outflow into the economy during the period.
CBN data showed that foreign exchange inflow into the economy dropped to $37.89 billion in eight months to August ending, 8M’22, from $60.37 billion in the corresponding period of 2021, 8M’21, representing 37 per cent, YoY decline.
Similarly, forex outflow from the economy fell to $22.02 billion in 8M’22 from $26.01 billion in 8M’21, representing 15.3 per cent YoY decline.
Consequently, net forex inflow into the economy dropped to $15.86 billion in 8M’22 from $34.38 billion in 8M’21, representing a 54 per cent decline.
However, net forex inflow increased month-on-month, MoM by 92 per cent to $3.16 billion in August this year from $1.64 billion in July.
Disclosing this in its monthly economic report for August released last week, the CBN said: “The economy recorded an increase in net foreign exchange inflow in the review month relative to the previous month. Aggregate foreign exchange inflow into the economy increased by 22.7 per cent to $6.40 billion, from $5.22 billion in July 2022. Similarly, foreign exchange outflow through the economy fell by 9.5 per cent to $3.24 billion, from $3.58 billion in the previous month.”
But the net forex inflow through the CBN was negative during the month. “A net inflow of $0.34 billion was recorded through the Bank in August 2022, compared to a net outflow of $0.88 billion in the previous month”, the CBN stated.