CBN records $2.55bn FX inflows in two months after naira unification

Bisola David
Bisola David
United Capital endorses CBN's stakeholder partnership

The Central Bank of Nigeria revealed that foreign exchange inflows into the country increased to $2.55 billion in the two months following the naira’s unification.

The total inflows through the Investors and Exporters window rose to $1.41 billion in June from $1.14 billion in May, according to figures from the central bank, marking a second consecutive month of growth.

The bank highlighted that exporters and businesses contributed to the inflows in June.

In an effort to increase liquidity and stability, the Central Bank of Nigeria announced in June that all forex market sectors would be combined into a single window.

Different parts of the country have responded differently to the currency rate unification.

Companies just recently published their Q2 financial accounts, and despite increased revenues, the majority of them recorded pre-tax losses due to foreign exchange revaluation losses.

As Nigeria adjusts to the removal of fuel subsidies, the price of petrol has increased with the naira unification to N640/ltr.

Even though the naira is still falling versus the dollar, analysts think that over the long and medium term, exchange rate unification will boost FX liquidity.

Some experts think that the naira float will attract investors to other areas of the economy.

On Thursday, August 10, 2023, the naira plunged to another record low of N930/$1, as demand for dollars from importers and other end users vastly outstrips supply.

As they continue to bemoan the lack of dollars in the face of increased demand, operators quoted rates as high as N930/$1 as opposed to the N910/$1 that was quoted on Wednesday.

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