Net FX inflow surges by 245.9% in 1 year

• Net foreign exchange inflow surged by 245.9 per cent in one year
• The FX inflow rose to $5.95 billion as of November 2024 from $1.7 billion recorded in November 2023
• External reserves also increased to $40.38 billion as of November 2024

Net foreign exchange (FX) inflow into Nigeria soared by 245.9 per cent in one year as of November 2024.

According to data from the Central Bank of Nigeria (CBN)’s economic report, FX inflow rose to $5.95 billion as of November 2024 compared to the $1.7 billion recorded in November 2023.

The net FX flow is the difference between total inflows and outflows of foreign exchange and reflects a positive balance.

A positive balance indicates that the foreign currency that entered the economy is more than what left the economy and is crucial to supporting foreign reserves and exchange rate stability.

Analysis of FX inflows and outflows

A monthly analysis of the CBN’s data shows that net FX inflow was lower in November 2024 due to reduced inflows through the CBN.

Total FX flows recorded in November amounted to a net inflow of $5.95 billion compared to $4.86 billion in October 2024. Aggregate foreign exchange inflows declined to $8.40 billion in November from $9.15 billion in the preceding month, while outflows dropped to $2.45 billion from $4.29 billion in October 2024.

In November 2024, FX inflow through the CBN declined to $2.91 billion from $4.48 billion, while autonomous inflows rose to $5.49 billion from $4.67 billion in October.

FX outflows through the CBN fell to $2.09 billion in November 2024 from $3.73 billion, while autonomous outflows decreased to $0.36 billion from $0.56 billion in October 2024.

In November 2024, the CBN recorded a net inflow of $0.82 billion compared to $0.75 billion in October 2024, while autonomous sources reported a net inflow of $5.13 billion, up from $4.11 billion in the previous month.

External reserves increased to $40.38 billion

The CBN’s data also shows that Nigeria’s external reserves increased to $40.38 billion in November 2024, surpassing the international benchmark of three months of import cover.

As of the end of November 2024, the reserves increased to $40.38 billion from $39.71 billion in October 2024.

The reserve level could cover 9.16 months of imports for goods and services or 13.71 months for goods alone.

The naira depreciated in November 2024

The naira depreciated against the US dollar in the Nigerian Foreign Exchange Market (NFEM) during the review period.

The CBN data shows that the average exchange rate of the naira weakened by 1.78 per cent to N1,670.78/$ from N1,641.12/$ in October 2024.

However, at the end of the period, the rate appreciated slightly by 0.39 per cent to N1,663.90/$ from N1,670.47/$ at the end of October.

The average foreign exchange turnover at the NFEM rose by 24.78 per cent to $301.52 million, from $241.65 million in October 2024, due to increased activity in the window.

IMTO inflows increased by 63.7% in first 9 months of 2024 – CBN

Meanwhile, TheRadar earlier reported that International Money Transfer Operator (IMTO) inflows increased by 63.7 per cent in the first nine months of 2024, according to the Central Bank of Nigeria (CBN).

According to the latest quarterly statistical bulletin of the CBN, IMTO inflows rose from $2.33 billion during the same period in 2023 to $3.82 billion in 2024.