A total foreign exchange of $58.01bn came into the economy through the Central Bank of Nigeria (CBN) within a 12-month period covering November 2018 and November this year.
The figure was arrived at based on an analysis of the foreign exchange inflow and outflow through the economy as contained in the economic report of the apex bank.
An analysis of the report showed that while the economy recorded foreign exchange inflow of $58.01bn, about $62.18bn went out during the one-year period.
Based on the rate at which outflows exceeded the inflows, the economy recorded a $4.17tn deficit in foreign exchange during the one-year period.
The main sources of Nigeria’s foreign exchange inflow are crude oil sales and receipts from non-oil sector.
The rate of foreign exchange inflows has significantly impacted on the country’s foreign exchange reserves, which are used to back liabilities and influence monetary policy.
In recent times, the nation’s external reserves have been on a decline owing to the drop in oil receipts and the intervention of the CBN in the foreign exchange market.
Data from the CBN showed that as of November last year, the country recorded forex inflow of $3.21bn while the outflow was put at $3.78bn. This resulted in a deficit net flow of $574.3m.
In December last year, the inflow was put at $5.04bn while outflow was estimated at $5.85bn, leaving a deficit net flow of $812.6m.
For January, February, March and April, the inflows were put at $5.39bn, $5.22bn, $7.75bn and $3.85bn while outflows were $5.69bn, $5.36bn, $5.25bn and $4.27bn, respectively.
This resulted in a deficit of $292.8m and $418.4m in January and April while February and March recorded positive net flow of $134m and $2.51bn respectively.
For May, the country recorded inflow of $4.01bn while outflow was $3.59bn, thus resulting in a positive net flow of $421.9m.
In June, July, August, September, October and November, the economy recorded inflows of $3.59bn, $3.6bn, $4.89bn, $4.15bn, $3.52bn and $3.72bn while outflows were $3.69bn, $3.84bn, $6.14bn, $5.42bn, $4.95bn and $4.31bn respectively.
This resulted in a deficit outflow of $98.8m in June, $228.5m in July, $1.25bn in August, $1.27bn in September, $1.43bn in October and $589m in November.
The report read in part, “Aggregate outflow of foreign exchange from the bank fell by 12.9 per cent and 17.3 per cent to $4.31bn, below the levels at the end of the preceding month and the corresponding period of 2018 respectively.
“The development, relative to the preceding month’s level, was attributed mainly to 10.4 per cent and 18.4 per cent decline in interbank utilisation and other official payments respectively.
“Overall, foreign exchange flows, through the bank at end-November 2019, resulted in a net outflow of $0.59bn, compared with a net outflow of $1.43bn in the preceding month.
“It, however, recorded a net inflow of $2.71bn, when compared with the level in the corresponding period of 2018.” – Punch.
