In 3yrs, Net Foreign Exchange Inflow Falls 56% to $3.2bn

Net foreign exchange (forex) inflow into the economy fell by 56 per cent to $3.2 million in February 2022 from $7.2 billion in February 2020.

Economic Confidential analysis of data from the Central Bank of Nigeria, CBN, monthly Economic Report for the period under review showed that year-on-year (YoY), net forex inflow stood at $7.19 billion in February 2020 from where it fell by 40 per cent to $4.3 billion in February 2021 and down by 26.5 per cent to $3.16 billion in February 2022.

The steady decline in net forex inflow was occasioned by a 53 per cent decline in forex inflow during the three year period, reflecting the severe impacts of COVID-19 pandemic and the ongoing Russia war in Ukraine. This cancelled the positive effect of the 54 per cent decline in forex outflow during the period.

According to the data, total forex inflow dropped by 43 per cent to $6.3 billion in February 2022 from $7.5 billion. In 2021, forex inflow dropped by 44 per from $13.39 billion in February 2020.

Though total forex outflow through the economy rose marginally by 1.3 per cent to $3.17 billion in February 2022 from $3.13 billion, it fell by 54 per cent from $6.9 billion in February 2020.

However, further analysis showed that net inflow through the CBN rose by 255.6 per cent to $200 million in February 2022 from -$128.52 million in February 2020.

On YoY basis, net inflow through the CBN stood at -$128.52 million in February 2020 and down by 844 per cent to -$957.24 million in February 2021 but rose by 120.8 per cent to $200 million February 2022.

Forex inflow through the CBN fell by 55 per cent to $2.49 billion in February 2022 from $5.59 billion in February 2020.

On the other hand, forex outflow through the apex bank fell by 59 per cent to $2.29 billion in February 2022 from $5.7 billion in February 2020.