Hope Rises for Naira As CBN Attracts $2.3Bn FX Inflow From Foreign Investors

• The Central Bank of Nigeria has stated that there is heightened interest from foreign investors in the country's assets
• This interest has helped improve dollar inflow and provided a significant boost for the CBN in its efforts to address the Naira's free fall
• The CBN noted that the country has recorded a total foreign portfolio flow of at least $2.3 billion in the first two months of 2024

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria has reported that foreign portfolio inflows into Nigeria surged to $2.3 billion in the first two months of 2024, compared to $3.9 billion in total for 2023.

This was disclosed by Hakama Sidi Ali, the acting director of CBN's corporate communications, while speaking to a group of journalists in Abuja.

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She also revealed that the inflows have continued in March 2024.

Dollar inflow into Nigeria rises

Providing insight, Sidi Ali said:

“Foreign investors purchased more than US$1 billion of Nigerian assets in February alone, with total portfolio flows of at least US$2.3 billion recorded thus far in 2024 compared to US$ 3.9 billion seen in total for last year"

"This is driven by increased investor interest in short-term sovereign debt following the recent adjustment to benchmark interest rates.”

Legit.ng had earlier reported that in March, the CBN had twice issued government securities on behalf of the government.

In the auctions conducted on March 1 and 6, 2024, the securities have been significantly oversubscribed, with foreign investors accounting for over 75% of bids received.

The increased interest from foreign investors is expected to bring more dollar inflow and help ease the pressure on the Naira caused by low supply.

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CBN takes another bold step to help naira recover against US dollar

Banks sell dollars at new rate

Legit.ng reported that once again, the value of the Nigerian currency fell against the US dollar in the official market despite recent efforts by the Central Bank of Nigeria to enforce stability.

According to data from FMDQ securities, the Naira closed at N1,605.74/$1 at the end of trading on Wednesday, March 6, 2024.

This represents a 0.2% or N3.31 depreciation compared with the previous day's N1,602,43/$1 exchange rate.

Source: Legit.ng