The Central Bank of Nigeria said in its report on forex flows the net foreign exchange inflow into the Nigerian economy rose slightly to $2.77bn in July from $2.27bn in June.
Despite the contraction in autonomous inflow, the apex bank added that the upward trajectory in crude oil prices improved forex inflow through the bank, resulting in an overall net inflow in July.
The report said, “Aggregate foreign exchange inflow into the economy declined by 7.4 per cent and 8.7 per cent to $6.1bn, compared with the level in June 2021 and July 2020, respectively.
“The decrease reflected mainly the contraction in inflow through the autonomous sources, which fell by 33.3 per cent to $2.79bn in July 2021.
“However, foreign exchange inflow through the bank increased by 37.7 per cent to $3.31bn in July 2021, as oil-related inflow increased due to the upward trajectory in oil prices.”
The CBN said foreign exchange outflow through the economy fell by 23.0 per cent to $3.33bn in July.
It said, “The fall in outflow was due mainly to a decrease in the bank’s intervention in the foreign exchange market and lower direct payments, which reduced the outflow through the bank.
“However, outflow through autonomous sources inched up by 12.4 per cent to $0.67bn in July 2021 due majorly to the 13.2 per cent increase in payments for invisible import.
“Overall, foreign exchange flows resulted in a higher net inflow of $2.77bn in July 2021, compared with $2.27bn in June 2021.”