The Central Bank of Nigeria has disclosed a 130% increase in remittance inflows, with the figure reaching $553 million in July 2024.
This figure represents the highest monthly remittance inflows ever documented, showing a significant increase from the same period in 2023.
This was disclosed in a statement signed by the Acting Director of Corporate Communications, on Tuesday.
The CBN attributes this increase in remittance inflows to several calculated policy moves intended to improve foreign exchange market liquidity in Nigeria.
The statement read “The Central Bank of Nigeria (CBN) has reported a significant increase in remittance inflows, reaching $553 million in July 2024, a 130 per cent increase from the corresponding period in 2023.
“The substantial growth in remittance receipts is attributable to policy measures introduced by the CBN to enhance liquidity in Nigeria’s foreign exchange market. These measures include granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for IMTOs.
“Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments. The CBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year.”
The National Bureau of Statistics (NBS) revealed a decline in Nigeria’s headline inflation rate year over year for the first time in 19 months, which the CBN noted as evidence of the success of the CBN’s tightening of monetary policy.
The CBN also reaffirmed its pledge to keep a careful eye on market conditions and adjust its policies as necessary to ensure the flow of remittances and support the stability of the foreign exchange market.
The CBN issued a circular in January that removed the previous cap on exchange rates quoted by International Money Transfer Operators.
