In February, the Central Bank of Nigeria witnessed a substantial surge in foreign exchange inflow, as reported by CBN spokeswoman Hakama Sidi.
The apex bank highlighted the notable increase in remittance payments from Nigerians abroad and the acquisition of naira assets by foreign portfolio investors.
According to CBN’s data, overseas remittances skyrocketed to $1.3 billion, marking a fourfold increase compared to the $300 million recorded in January.
The statement revealed that foreign investors notched up purchases of Nigerian assets exceeding one billion dollars last month, contributing to a total portfolio flow of at least $2.3 billion in 2024, surpassing the $3.9 billion recorded for the entire previous year.
The upward trend in forex inflows persisted into March, fueled by heightened interest from investors in short-term sovereign debt following adjustments to benchmark interest rates.
CBN noted that government securities issuances in March were heavily oversubscribed, with foreign investors constituting over 75 per cent of bids at auctions held on March 1 and 6.
CBN Governor Yemi Cardoso articulated a comprehensive inflation-targeting strategy during the Monetary Policy Committee meeting in February.
Mr Cardoso also addressed exchange rate stabilization and initiatives to instil confidence in the banking system and the overall economy. He engaged in a conference call with foreign portfolio investors, emphasizing the expectation of sustained increases in Nigeria’s foreign currency reserves and enhanced liquidity in the foreign exchange market.
Mr. Cardoso expressed optimism, stating, “All the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off.” He underscored the importance of clarity in strategy, aiming to ensure a well-functioning market with a consistent supply, fostering an environment where investors can confidently participate.