Aggregate forex inflow rises 118% to $20.5bn in 2 months

Aggregate forex inflow rises 118% to $20.5bn in 2 months.

Aggregate forex inflow rises 118% to $20.5bn in 2 months.

Aggregate foreign exchange inflow into the economy rose sharply by 118 per cent, year-on-year, YoY, to $20.5 billion in the first two months (January and February) of 2020 from $9.41 billion in the corresponding period of 2019.

The CBN disclosed this in its monthly economic report for January and February 2020 released this week.

The report showed foreign exchange inflow rose by 59 per cent, YoY, to $33.29 billion in January and February 2020, from $20.89 billion in the corresponding period of 2019.

The report also showed 11.1 per cent, YoY increase in foreign exchange outflow to $12.76 billion in January and February 2020 from $11.48 billion in the corresponding period of 2019.

In its report for February 2020, the apex bank said: “The external sector performance declined in the review month, due to the 11.7 per cent decrease in the international price of crude oil to $58.45 per barrel, at end-February 2020. This was attributed, mainly, to the continuous spread of COVID-19.

“Consequently, aggregate foreign exchange inflow into the economy amounted to $16.19 billion, indicating a decrease of 4.4 per cent, compared with the level in the preceding month. It was, however, 61.7 per cent higher than the level in the corresponding period of 2019. The development relative to the preceding month reflected the decline of 8.6 per cent and 2.5 per cent in inflow through the Bank and autonomous sources, respectively.

“Aggregate foreign exchange outflow from the economy, at $6.84 billion, fell by 1.5 per cent, compared with the level in the preceding month. It was, however, 26.0 per cent higher than the level in the corresponding period of 2019. The development was attributed, mainly, to the 1.7 per cent decline in outflow through the Bank. Accordingly, foreign exchange flows through the economy, resulted in a net inflow of $9.35 billion in the review period, compared with $9.99 billion and US$4.58 billion at end-January 2020 and end-February 2019, respectively.”