Net Foreign Exchange Inflow Falls 31% To $21.8bn – CBN

Net foreign exchange inflow into the economy declined by 31 per cent, year-on-year, to $21.81 billion in the seven months to July 2021, from $31.57 billion in the corresponding period of 2020.

The decline was caused by a 30 per cent decline in  foreign inflow which cancelled the benefit of a 29 per cent decline in foreign exchange (forex) outflow out of the economy during seven months to July 2021 (7mths-21).

The Central Bank of Nigeria (CBN), in its Monthly Economic Report for July 2021, showed forex inflow dropped to $49.66 billion in 7mths-21  from $71.03 billion in 7mths-2020. Similarly, forex outflow fell to $27.85 billion in 7mths-21 from $31.57 billion in 7mths-2020.

It attributed the improvement in net forex inflow in July to a 23 per cent decline in forex outflow during the month, caused by decline in its  intervention in the foreign exchange market and lower direct payments.

This sharp fall in forex outflow dampened the effect of 7.4 per cent decline in forex inflow recorded during the month.