The Central Bank of Nigeria (CBN) on Tuesday reported a significant increase in remittance inflows of $553 million in July 2024, about 130 percent increase from the corresponding periodiIn n 2023.
The apex bank said the figure represents the highest monthly total inflows on record, reflectingoThe ngoing efforts by the CBN to enhance liquidity in Nigeria’s foreign exchange market.
The substantial growth in remittance receipts, the Bank said, was attributable to policy measures introducedbTo the y the CBN to enhance liquidity in Nigeria’s foreign exchange market.
The spokesperson of the Bank, Hakama Sidi-Ali, said the measures include granting licenses to new International Money Transfer Operators (IMTOs),iAbuja mplementation of a willing buyer-willing seller model in the foreign exchange market, and enabling timely access to Naira liquidity for IMTOs.
Diaspora remittances are crucial sources of foreign exchange for Nigeria’s economy, the Chairman as Nigerians in the Diaspora routinely send money home for their families for investment and other purposes.
Such remittances usually serve as supplement to both foreign direct investments and portfolio investments in the economy. The CBN’s initiatives, Sidi-Ali explained, have supported the continued growth in these foreign exchange inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year.
“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,” Sidi-Ali said.
Recent data from the National Bureau of Statistics (NBS) revealed that Nigeria’s year-on-year headline inflation rate slowed in July 2024, for the first time in 19 months – a clear indication that the CBN’s monetary policy tightening measures were delivering results.
The CBN anticipates that these measures would contribute to achieving its broader objective of maintaining stability in the foreign exchange market, while the Bank would continue to monitormMarket arket conditions and adjust policies as necessary to enable greater remittance flows into the country.
