The Central Bank of Nigeria (CBN) has announced a significant milestone in remittance inflows, reaching an all-time high of $553 million in July 2024, representing a 130% increase from the same period in 2023.
The CBN, in a statement, attributed this substantial growth to policy measures aimed at enhancing liquidity in the foreign exchange market.
These initiatives includes: Licensing new International Money Transfer Operators, IMTOs, Implementing a willing buyer-willing seller model, Ensuring timely access to naira liquidity for IMTOs
According to the Nigerian apex bank, Diaspora remittances play a crucial role in Nigeria’s foreign exchange earnings, supplementing foreign direct investment and portfolio investments and it plans to double formal remittance receipts within a year.
This increase in remittances demonstrates the success of the CBN’s efforts to: bolster public confidence in the foreign exchange market, strengthen the banking system and promote price stability
Recent data from Nigeria’s National Bureau of Statistics (NBS) shows that Nigeria’s headline inflation rate slowed in July 2024, the first in 19 months, indicating the effectiveness of the CBN’s monetary policy measures.
“The CBN will continue to monitor market conditions and adjust policies to facilitate greater remittance flows into Nigeria,” the statement added.
GIK/APA