Forex Inflow via CBN Rises 43% to $12.5b in H2 2016

By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) has revealed that the foreign exchange inflow through it rose by 42.9 percent above the level in the first half of 2016 to $12.45 billion.

This, it explained, was as a result of increases in crude oil and non-oil export earnings.

In its Financial Stability Report, the apex bank said further that receipts from crude oil sales rose by 22.7 percent to $5.66 billion, in the first half of 2016.

This, it added, was due to the gradual increase in domestic production and international crude oil prices, pointing out that the non-oil receipts rose by 65.5 percent to $6.79 billion in the second half of 2016, due mainly to increase in other official receipts.

The report, analysed by Business Post, further said the total autonomous inflow rose by 0.7 percent to $20.58 billion, compared to the level in the first half of 2016 due mainly to rise in invisibles by 2.5 percent, of which 62.3 percent was accounted for by ordinary domiciliary accounts

The CBN also said the provisional cumulative inflow of foreign exchange into the economy, at $33.02 billion, was 13.3 percent above the level in the first half of 2016.

Of this amount, inflow through autonomous sources accounted for 62.3 percent, while inflow through the CBN accounted for 37.7 percent.

Total foreign exchange outflow from the economy rose by 14.8 percent to $13.64 billion from the level in the first half of 2016.

The rise in outflow was mainly attributed to the increase in the interbank forwards settled in the second half of 2016, it said.

The economy recorded a net foreign exchange inflow of $19.38 billion, representing 12.21 percent rise above the level in the first half of 2016, the report added.

The central bank report also stated that foreign exchange outflow through it rose by 15.5 percent to $12.39 billion, above the level in the first half of 2016.

Of this amount, interbank utilization accounted for $7.99 billion, of which inter-bank forwards, inter-bank sales and others stood at $4.17 billion (52.14 percent), $0.72 billion (8.92 percent) and $3.11 billion (38.9 percent), respectively.

Overall, the total foreign exchange transactions through the Bank resulted in a net inflow of $0.58 billion in the second half of 2016, compared with a net inflow of $0.96 billion in the corresponding half of 2015. This is, however, in contrast to a net outflow of $2.03 billion in the first half of 2016.