Foreign exchange inflow into Nigeria in November 2020 dropped by 62 percent year-on-year amid low proceeds from crude oil market.
Slow global economic recovery also affected Nigeria’s forex inflow in the month under review, according to the Central Bank of Nigeria’s November Economic Monthly report published on Wednesday.
Nigeria recorded a $5.7billion foreign exchange inflow into the country in November 2020 as against $9.23 billion in the corresponding period in 2019.
“Slow global economic recovery and uncertainty in the crude oil market, resulted in lowered foreign exchange inflow into the economy,” the apex bank said.
Consequently, aggregate foreign exchange inflow into the economy was US$5.70 billion, a decrease of 13.3 percent and 62.0 percent, below the respective levels in the preceding month and the corresponding month of 2019.
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Also, foreign exchange outflow through the economy fell by 24.6 percent and 66.6 percent to $1.96bn, below the levels of $2.6bn and $5.87bn respectively, in the preceding month and the corresponding period of 2019.
Consequently, it added, the foreign exchange transactions through the economy resulted in a net inflow of $3.73bn, compared with $3.97bn and $9.11bn in the preceding month and the corresponding month of 2019 respectively.
The apex bank said its forex earnings from non-oil exports was impacted by the insecurity and the aftermath of the #EndSARS protests.
According to the report, aggregate foreign exchange inflow through the CBN was $1.15bn, a decrease of 39.1 percent and 76.9 percent, below the levels in the preceding month and the corresponding month of 2019, respectively.
The apex bank said, “Foreign exchange inflow through the CBN fell, due, mainly to lower non-oil receipts in November 2020.”
“The development was due, largely, to 50.1 percent decline in non-oil receipts to $0.73 billion from $1.47 billion in the previous month.”`
