Forex Inflow Hits $11bn

Forex Inflow Hits $11bn

The Central Bank of Nigeria (CBN) keeps track of how much money comes into the country from other places. And guess what? In July and August, Nigeria received a whopping $11.11 billion in foreign exchange inflow! That’s a lot of money!

August’s Increase

Let’s dive into the details. According to the CBN’s August economic report, the amount of money coming into Nigeria in August increased by 5.8% compared to July. That means more money was flowing into the country during that time.

Where Did the Money Come From?

The report says that the increase in foreign exchange inflow was mainly because of more money coming from sources within Nigeria. These sources are called autonomous sources. In August, Nigeria received a net inflow of $2.33 billion from these sources, which is 2.9% more than what they received in July.

More Numbers

But wait, there’s more! The total amount of foreign exchange inflow into Nigeria in August was $5.71 billion. That’s a 5.8% increase compared to the previous month, which was $5.40 billion. So, more money was coming into the country overall.

Foreign Exchange Outflows

Now, let’s talk about the money going out of Nigeria. In August, the amount of money leaving the country increased by 8.0% compared to July. It went from $3.13 billion to $3.38 billion. So, more money was going out of Nigeria during that time.

Through the Bank

The CBN also keeps track of how much money goes through the bank. In August 2023, the amount of foreign exchange inflow through the bank decreased by 5.9% compared to July. It went from $2.59 billion to $2.44 billion. On the other hand, the amount of money leaving through the bank increased by 6.3% from $2.80 billion to $2.98 billion.

Autonomous Sources

Remember those autonomous sources I mentioned earlier? Well, in August, Nigeria received $3.28 billion from these sources, which is a 16.6% increase compared to July. But here’s the interesting part: the amount of money leaving through autonomous sources also increased by 22.3% from $0.32 billion to $0.40 billion.

Banks Disconnect Non-Deposit Transfers

Conclusion

So, to sum it all up, Nigeria received a total net inflow of $2.88 billion from autonomous sources in August. That’s more than what they received in July, which was $2.48 billion. However, when we look at the overall picture, Nigeria had a net outflow of $0.55 billion in August, compared to $0.22 billion in the previous month.

That’s a lot of numbers to take in, but it’s important to understand how money flows in and out of a country. It can tell us a lot about the economy and how things are going. So, keep an eye on those forex inflow numbers, and you’ll be one step closer to understanding the world of finance!

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