CBN posts highest remittance inflow of $553m in July

The Central Bank of Nigeria has announced a significant increase in remittance inflows, reaching $553m in July 2024.

It said the amount is a 130 per cent increase from the corresponding period in 2023.

A statement by the apex bank’s acting Director of Corporate Communications, Sidi Ali, on Tuesday, said the figure represented the highest monthly total inflows on record and reflects ongoing efforts by CBN to enhance liquidity in Nigeria’s foreign exchange market.

The statement read, “The CBN has reported a significant increase in remittance inflows, reaching $553m in July 2024, a 130 per cent increase from the corresponding period in 2023. This figure represents the highest monthly total inflows on record and reflects ongoing efforts by CBN to enhance liquidity in Nigeria’s foreign exchange market.”

The statement explained that the substantial growth in remittance receipts was attributable to policy measures introduced by the CBN to enhance liquidity in Nigeria’s foreign exchange market.

It added that diaspora remittances have remained a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments.

It said, “These measures included granting licenses to new International Money Transfer Operators, implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for IMTOs.”

“Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments.’

The CBN said its initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year.

The statement added, “The increase in remittances is a strong testament to the success of the CBN’s ongoing efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability, which is essential for sustained economic growth.”

Recent data from the National Bureau of Statistics revealed that Nigeria’s year-on-year headline inflation rate slowed in July 2024, for the first time in 19 months.

CBN said the development is a clear indication that its monetary policy tightening measures are delivering results.

“The CBN anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market. The Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria,” the statement added.

In another development, the bank stated that the decline in the country’s inflation rate in July was a positive sign that its monetary measures were beginning to yield results.

The CBN highlighted this development as evidence of the effectiveness of its strategies aimed at stabilising the economy and controlling inflationary pressures.