The aggregate foreign exchange (forex) inflow into the Nigerian economy amounted to $10.89 billion in October, according to data from Central Bank of Nigeria (CBN).
The amount, according to the central bank’s economic report for October obtained yesterday, showed a decline of 0.9 per cent below the level at the end of the preceding month.
It, however, was an increase of 48.4 per cent relative to the level at the end of the corresponding period last year.
The report attributed the marginal decline to the 1.1 per cent and 0.7 per cent fall in inflow through the bank and autonomous sources respectively.
On the other hand, it stated that aggregate foreign exchange outflow from the economy, at $5.14 billion, fell by 10.3 per cent and 1.9 per cent, below the levels in the preceding month and the corresponding period of 2018 respectively.
The development was attributed mainly to the 12.1 per cent decline in outflow through the bank.
“Accordingly, foreign exchange flows through the economy, resulted in a net inflow of $5.75 billion in the review period, compared with $5.25 billion and $2.10 billion at end-September 2019 and end-October 2018, respectively,” it explained.
The report showed that aggregate foreign exchange inflow into the CBN, at $4.10 billion, declined by 1.1 per cent, below the level in the preceding month.
It, however, showed an increase of 44.1 per cent over the level at the end of the corresponding period of 2018.
According to the monthly report, the fall in aggregate foreign exchange inflow into the CBN, relative to the preceding month’s level, was attributed, largely, to the fall in oil receipts.
“Aggregate outflow of foreign exchange from the bank fell by 12.1 per cent and 3.2 per cent to $4.77 billion, below the levels at the end of the preceding month and the corresponding period of 2018, respectively. “The development, relative to the preceding month’s level, was attributed, mainly, to 0.5 per cent and 13.0 per cent decline in interbank utilisation and other official payments, respectively.
“Overall, foreign exchange flows, through the bank at the end of October 2019, resulted in a net outflow of $0.67 billion, compared with a net outflow of $1.27 billion and $2.08 billion in the preceding month and the corresponding period of 2018, respectively,” it stated.
The report showed that CBN has continued to intervene in the forex market to further sustain improved liquidity and relative stability in the market.
Owing to this, it sold a cumulative sum of $2.79 billion to authorised dealers in October, compared with $2.80 billion supplied in September. This indicated a decline of 0.5 per cent and 16.3 per cent relative to the levels in the preceding month and the end of the corresponding period of 2018, respectively.
A breakdown of the central bank’s forex intervention showed that interbank sales fell by 2.8 per cent to $0.10 billion, in contrast to the increase of 5.8 per cent in the preceding month.
But, Bureau De Change (BDC) sales and swaps transactions, however, rose by one per cent and 27.9 per cent to $1.07 billion and $0.03 billion, above the preceding month’s levels of $1.06 billion and $0.02 billion, respectively.
In addition, the report said Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at 1.93 million barrels per day (mbd) or 59.83 mb in the review month. This, it stated, represented a marginal decline of 0.02 mbd or 1.0 per cent, compared with 1.95 mbd produced in the preceding month.
