Foreign Exchange Inflow Rises To $23.60bn

Aggregate foreign exchange inflow into the country in the fourth quarter of 2020 rose to $23.60bn from $21.46bn in the third quarter, figure from the Central Bank of Nigeria revealed on Tuesday.

The CBN stated in its report on ‘Foreign exchange flows through the economy’ for the fourth quarter that though there was an increase in foreign exchange flows through the economy in the review quarter compared with the preceding quarter due to the reopening of most economies including Nigeria, the second wave of COVID-19 hampered a return to the levels experienced in the corresponding quarter of 2019.

Part of the report read, “Consequently, aggregate foreign exchange inflow in the fourth quarter of 2020 was $23.6bn, compared with $21.46bn and $36.32bn in the third quarter of 2020 and corresponding quarter of 2019, respectively.

This indicated an increase of 10.0 per cent over the previous quarter, but a decline of 35 per cent below the level in the corresponding quarter.

It added that foreign exchange outflow through the economy rose by 13.1 per cent above the third quarter of 2020 to $8.38bn in the review period but declined by 51.5 per cent below the level in the corresponding quarter of 2019.

Accordingly, foreign exchange flow through the economy resulted in a net inflow of $15.22bn in Q4, 2020, compared with the net inflow of $14.05bn and $19.05bn in the preceding quarter and corresponding quarter of 2019 respectively.