By Barnabas Esiet.
The Central Bank of Nigeria (CBN) recently announced a remarkable milestone in remittance inflows, reaching an all-time high of $553 million in July 2024.
This figure represents a significant 130% increase from the same period in 2023, showcasing the CBN’s successful efforts to enhance liquidity in Nigeria’s foreign exchange market.
The substantial growth in remittance receipts can be attributed to the CBN’s policy measures aimed at improving liquidity in the foreign exchange market.
These initiatives include granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and ensuring timely access to naira liquidity for IMTOs.
Diaspora remittances play a vital role in Nigeria’s foreign exchange earnings, complementing foreign direct investment and portfolio investments.
The CBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year.
The increase in remittances serves as a testament to the success of the CBN’s efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability. This is essential for sustained economic growth.
Recent data from the National Bureau of Statistics (NBS) revealed that Nigeria’s year-on-year headline inflation rate slowed in July 2024, for the first time in 19 months.
This indicates that the CBN’s monetary policy tightening measures are yielding results.
The CBN anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market.
The Bank has restated its commitment to continuously monitoring market conditions and adjusting policies as necessary to enable greater remittance flows into Nigeria.
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