The Central Bank of Nigeria (CBN) has reported a sharp rise in remittance inflows, which reached $553 million in July 2024, representing a 130% increase compared to the same period in 2023.
This figure marks the highest recorded monthly total inflow, as stated by Hakama Sidi Ali, the CBN’s Acting Director of Corporate Communications, on Tuesday.
The increase reflects the success of various CBN policy measures aimed at enhancing liquidity in Nigeria’s foreign exchange market. Key initiatives include licensing new International Money Transfer Operators (IMTOs), introducing a willing buyer-willing seller model, and facilitating easier naira liquidity access for IMTOs.
Diaspora remittances, which play a vital role in Nigeria’s foreign exchange supply, are now surpassing both foreign direct investment and portfolio investments. The CBN aims to double formal remittance receipts within the year, supported by these proactive measures.
The CBN also highlighted the broader economic impact, noting that recent data from the National Bureau of Statistics (NBS) shows a slowdown in Nigeria’s year-on-year inflation rate in July 2024, marking the first decline in 19 months.
The bank attributes this to its monetary policy tightening efforts, which are yielding positive results in maintaining price stability and fostering economic growth.
The CBN intends to continue monitoring market conditions and adjust its policies to sustain and further increase remittance inflows.
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