The Central Bank of Nigeria (CBN) has reported a significant increase $1.3 billion in foreign exchange inflow into the economy in February 2024, with marked increments in remittance payments by Nigerians overseas and purchases of naira assets by foreign portfolio investors.
CBN’s Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, explained that foreign investors purchased more than $1 billion of Nigerian assets last month, with total portfolio inflows of $2.3 billion recorded in 2024 compared to $3.9 billion of ast year.
“The Bank’s data indicates that overseas remittances rose to $1.3 billion in February 2024, more than four times the $300 million received in January.
According to her, higher FX inflows continued in March 2024, driven by increased investor interest in short-term sovereign debt following the recent adjustment to benchmark interest rates.
She noted that Government securities issuances had been significantly oversubscribed, with foreign investors accounting for over 75% of bids received at the auctions conducted on March 1 and 6, 2024.
The CBN Governor, Mr. Olayemi Cardoso, had set out an extensive strategy to curtail inflation, stabilise the exchange rate, and restore confidence in economy as well as the banking sector.
Cardoso during the last Monetary Policy Committee (MPC) meeting had 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.