The Central Bank of Nigeria (CBN) has announced a remarkable 136% increase in foreign exchange (FX) inflows in the first quarter of 2024, compared to the total inflows recorded in 2023. This revelation was made by CBN Governor, Dr. Olayemi Cardoso.
Dr. Cardoso attributed this impressive growth to the apex bank’s commitment to liberalizing the foreign exchange market, promoting transparency, and reducing arbitrage opportunities. He emphasized that the settlement of all valid FX forwards has boosted stakeholders’ confidence, leading to increased FX flows into the country.
The CBN has been working tirelessly to sanitize the forex market, issuing circulars and licensing new International Money Transfer Operators to double remittances into the country. Governor Cardoso expressed optimism about achieving this target, stating that the results of these reforms are already evident.
However, Dr. Cardoso acknowledged the impact of global uncertainties on economic growth, citing financial tightening and flights of investment as major challenges. He assured that the CBN is addressing inflationary pressures through monetary policy tightening, which will yield positive results in the near term.
Regarding the Bureau de Change segment, the CBN governor explained that revised regulatory and supervisory guidelines have been developed to ensure BDCs play their intended role in the foreign exchange market. Licenses of BDCs involved in unwholesome practices have been revoked, and the CBN will continue to focus on increasing diaspora remittances through official channels to improve FX market liquidity.
Dr. Cardoso reiterated the CBN’s commitment to promoting monetary and price stability, acknowledging that more work is required to address economic challenges. He assured that the apex bank will continue to enhance its efforts to deliver on its mandate and restore the economy to a path of inclusive and accelerated growth.
This development is a positive indication of Nigeria’s economic prospects, and stakeholders are eagerly awaiting the CBN’s continued efforts to stabilize and grow the economy.
