The inflow of foreign cash into the Nigerian economy increased significantly in February, according to the Central Bank of Nigeria (CBN).This was said in a statement released on Friday in Abuja by Mrs. Hakama Sidi, the acting director of the CBN’s corporate communications department.
According to Sidi, the increase in foreign exchange influx was attributed to a notable rise in the amount of money sent home by Nigerians living abroad and the acquisition of naira assets by overseas portfolio investors.
She claims that remittances from outside increased to 1.3 billion dollars in February, about four times the 300 million dollars received in January, based on figures from the national bank.
“Foreign investors purchased more than one billion dollars of Nigerian assets last month, with total portfolio flows of at least 2.3 billion dollars recorded thus far in 2024 compared to 3.9 billion dollars seen in total for last year,” she said.
She said that higher forex inflows have continued in March, driven by increased investor interest in short-term sovereign debt following the recent adjustment to benchmark interest rates.
She said that government securities issuances had been significantly oversubscribed, with foreign investors accounting for over 75 per cent of bids received at the auctions conducted on March 1 and 6.
Cardoso also targeted exchange rate stabilisation, and strategies to spur confidence in the banking system and economy.
He held a conference call with foreign portfolio investors to set expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.
According to him, all the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off.
“When people understand the real issues and see a strategy and a plan, things tend to calm down.
“Our objective today is to ensure that the market has supply, that the market functions, and that investors can come in and go out,” he said.
