· As outflows through CBN rises 19% to $20bn
By Elizabeth Adegbesan
Foreign exchange flows through the economy fell year-on-year (YoY) by 36 percent to $17.4 billion as at July 2022 from $27.3 billion in the corresponding period of last year.
Data from the Central Bank of Nigeria, CBN, monthly Economic Report for the month showed that aggregate foreign exchange inflow into the economy was $43.02 billion, compared with US$49.6 billion in the corresponding period of 2021, while total foreign exchange outflow rose by 14 percent to $25.58 billion relative to $22.37 billion. Consequently, a net inflow of $17.4 billion was recorded during the period.
The data also showed that outflows through the CBN rose by 19.9 percent to $20.05 billion in July 2022 from $16.71 billion in the corresponding period of 2021.
However, this came as CBN foreign exchange sales to authorized dealers fell YoY by 14 percent to $11.42 billion in the July of 2022 from $13.35 billion in the same period last year.
A breakdown showed that SME interventions and matured swap contracts declined YoY by 2.7 percent and 17.9 percent to $739 million and $1.92 billion from $759.68 million and $2.34 billion respectively in 2021.
However, sales at the investors & exporters window, interbank/invisibles and SMIS windows, increased by 27 per cent, 33 per cent and 17.8 percent to $2.68 billion, $953.92 million and $4.55 billion compared with $2.1 billion, $714.6 million and $3.86 billion respectively in 2021.
In the July 2022 Economic Report the CBN noted that forex sales to authorised dealers fell month-on-month by 15.4 percent to $1.75 billion in July from $2.07 billion in June 2022.
The report stated:”Total foreign exchange sales to authorised dealers by the Bank was $1.75 billion in July, a decrease of 15.4 per cent, relative to US$2.07 billion in June.
“A breakdown shows that foreign exchange sales at the interbank/invisible window and matured Swaps decreased by 22.0 per cent and 59.1 per cent, respectively, to $0.13 billion and $0.27 billion, below their respective levels in the preceding month.
“In contrast, FX sales at Investors and Exporters (I&E), Secondary Market Intervention Sales (SMIS) and Small and Medium Enterprises (SMEs) windows rose by 5.8 per cent, 0.6 per cent and 65.7 per cent, respectively, to $0.44 billion, $0.72 billion, and $0.19 billion, compared to their levels in June.”
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