In July 2024, Nigeria achieved a historic milestone in remittance inflows, reaching an unprecedented $553 million, according to the Central Bank of Nigeria (CBN). This represents a staggering 130% increase compared to the same period in 2023, marking the highest monthly remittance total ever recorded.
The CBN credited this surge to strategic policy measures aimed at enhancing liquidity in the country’s foreign exchange market. These initiatives include granting licenses to new International Money Transfer Operators (IMTOs), adopting a willing buyer-willing seller exchange model, and ensuring prompt access to naira liquidity for IMTOs.
“Diaspora remittances play a vital role in supporting Nigeria’s foreign exchange reserves, supplementing foreign direct investments and portfolio inflows,” stated Sidi Hakama, the CBN’s acting Director of Corporate Communications. “The significant increase in remittances is a testament to the success of our ongoing efforts to build confidence in the foreign exchange market and strengthen the economy.”
The CBN’s policies have been pivotal in driving this growth, aligning with the bank’s objective to double formal remittance receipts within a year. The boost in remittances is also seen as a positive indicator of the CBN’s broader economic strategies, which include fostering a robust and inclusive banking system and promoting price stability.
Despite this record inflow, the naira faced pressure against the dollar, trading at N1579.89 per dollar. The CBN remains committed to monitoring market dynamics and adjusting its policies to further increase remittance flows and stabilize the foreign exchange market.
Additionally, recent data from the National Bureau of Statistics showed a decrease in Nigeria’s year-on-year inflation rate in July 2024, signaling that the CBN’s monetary policy measures are starting to yield results.
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