Scrambling for solution to the shortage of Foreign exchange and the spirally fall in the value of local currency, Naira, the Central Bank of Nigeria (CBN) has reported a significant increase in foreign exchange inflow into the economy in February.
Acting Director, Corporate Communications Department of the CBN, Mrs Hakama Sidi, said on Friday in Abuja that the upsurge in forex inflow was recorded with marked increments in remittance payments by Nigerians overseas and purchases of naira assets by foreign portfolio investors.
According to her, the apex bank’s data indicates that overseas remittances rose to $1.3 billion in February, more than four times the $300 million received in January.
“Foreign investors purchased more than one billion dollars of Nigerian assets last month, with total portfolio flows of at least $2.3 billion recorded thus far in 2024 compared to $3.9 billion seen in total for last year,” she said.
She said that higher forex inflows has continued in March, driven by increased investor interest in short-term sovereign debt following the recent adjustment to benchmark interest rates.
She said that government securities issuances had been significantly oversubscribed, with foreign investors accounting for over 75 per cent of bids received at the auctions conducted on March 1 and 6.
The CBN Governor, Mr Yemi Cardoso, set out a detailed inflation-targeting strategy, using the last Monetary Policy Committee meeting in February.
Cardoso also targeted exchange rate stabilisation, and strategies to spur confidence in the banking system and economy.
He held a conference call with foreign portfolio investors to set expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.
According to him, all the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off.
“When people understand the real issues and see a strategy and a plan, things tend to calm down.
“Our objective today is to ensure that the market has supply, that the market functions, and that investors can come in and go out,” he said.
