The net foreign exchange inflow to the Nigerian economy in the third quarter (Q3) of this year decreased by 2.97 per cent to $14.46bn from $14.89bn in the preceding quarter.
The Central Bank of Nigeria (CBN) in its third-quarter economic report published on Friday stated that on a quarter-on-quarter basis, net foreign exchange in the third quarter decreased by 2.97 per cent however compared to the third quarter of 2023, net foreign inflow had increased by 75.91 per cent from $8.22bn to $14.46bn.
In the Q3, foreign exchange inflow increased by 3.01 per cent to $22.89bn from $22.22bn in Q2 2024. Also, inflows through official sources increased in Q3 as those of autonomous sources declined.
The report said, “Inflows through the bank rose by 39.63 per cent to $11.86 billion from $8.49bn, while autonomous sources fell by 19.66 per cent to $11.03bn from $13.72bn in the preceding quarter. Foreign exchange outflow through the economy rose by 15.18 per cent to $8.43bn, relative to the level in Q2 2024. Outflows through the bank rose by 27.91 per cent to $7.31bn, while those through autonomous sources decreased by 30.06 per cent to $1.12bn.
“Consequently, net foreign exchange inflow through the economy decreased by 2.97 per cent to $14.46bn, from $14.89bn in the preceding quarter. However, net inflow through autonomous sources fell to $9.90bn from $12.12bn in the preceding quarter. A net inflow of $4.55bn was recorded through the bank compared with a net outflow of $2.78bn in the preceding quarter.”
Meanwhile, in the same quarter, the average exchange rate at the Nigerian Autonomous Foreign Exchange Market depreciated by 14.62 per cent to N1,588.64/$, from N1,385.96/$ in Q2’2024, owing to increased demand pressure.
Also, the external reserves rose to $39.29bn from $34.76bn at end-September 2024. This level of reserves could cover 8.91 months of imports for goods and services or 13.34 months for goods only.
GIK/APA