CBN Announces Over $1.5 Billion Forex Inflow Into Nigeria

• The CBN has reported a significant inflow of foreign exchange into the country, indicating a potential strengthening of the naira
• The influx of forex signifies improved confidence in Nigeria following recent efforts to attract foreign investors
• In the last few weeks, the naira has been appreciating against the US dollar in both the official and unofficial markets

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 (CBN) has disclosed that the Nigerian economy witnessed a $1.5 billion foreign exchange inflow into the country two days after the Monetary Policy Committee (MPC) meeting.

By this development, the CBN is optimistic about the health of the foreign exchange market in Nigeria.

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The Central Bank of Nigeria (CBN) has announced a substantial foreign exchange (forex) inflow of over $1.5 billion into the country.

The influx of foreign currency comes two days after the Monetary Policy Committee (MPC) announced an increment in the interest rate benchmark by 200 basis points to 24.75% from 22.75%.

CBN increases forex inflow

Hakama Sidi Ali, Acting Director of Corporate Communications for the CBN, who disclosed this, stated that the positive development CBN said is a direct result of its ongoing monetary policy efforts.

CBN added that data shows that the inflows stemmed from the CBN’s initiatives to stabilize the foreign exchange market, the Nation reports.

Her words:

“This development aligns with Governor Olayemi Cardoso’s recent pronouncements following the Monetary Policy Committee (MPC) meeting on March 26th, 2024”.

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Naira to dollar exchange rate

In the last few weeks, the naira has appreciated both the unofficial and Autonomous Foreign Exchange (AFEX) markets.

As of Thursday, March 28th, 2024, the naira traded at N1,309/$1 in the official market compared to N1,611/$1 it was the second week of March.

UK firms predict exciting exchange rate

Earlier, Legit.ng reported that two UK-based financial institutions have predicted a new exchange rate for the naira against the dollar.

Goldman Sachs and Standard Chartered believe the naira will rebound and close stronger in 2024.

Their predictions are based on the current reforms by the Cardoso-led CBN, which has helped the naira achieve an N1572.86/$ rate on Monday from above N1,600.

Source: Legit.ng