Nigeria: Forex Inflow Drops to U.S. $10.50 Billion in First Quarter

Nigeria's foreign exchange inflow declined by six per cent to $10.50 billion in the first quarter of 2013, as against the 11.3 per cent recorded in the preceding quarter of 2012.

The Central Bank of Nigeria (CBN) disclosed this in its first quarter economic report for 2013, posted on its website.

The report also showed that the amount of total outflow during the period was $6.44 billion, reflecting a decline of 17.6 and 34 per cent below the levels in the preceding quarter and corresponding period of 2012, respectively.

This, according to the central bank, resulted to a net inflow of $4.06 billion, compared to a net inflow of $3.35 billion and $2.36 billion in the preceding quarter and the corresponding period of 2012.
The CBN, however attributed the decline in inflow relative to the preceding quarter largely to the 54.1 per cent fall in non-oil receipts. The fall in outflow was attributed to the 4.2 and 74.6 per cent decline in bureau de change (BDC) and Swap sales.

The provisional data on aggregate foreign exchange flows through the economy also indicated that total inflow amounted to $34.47 billion, representing an increase of 13.5 and 20.9 per cent above the levels in the preceding quarter and the corresponding quarter of 2012, respectively.

"Non-oil public sector inflows, which accounted for 1.4 per cent of the total foreign exchange flows declined significantly by 54.1 per cent below the preceding quarter's level, while autonomous inflow, which accounted for 69.5 per cent, increased by 32.8 per cent above the preceding quarter's level," it said.

Commenting on the level of currency-in-circulation in the economy, the report showed that at N1.508 trillion, currency-in-circulation fell by 7.6 per cent at the end of the first quarter of 2013, in contrast to a growth of 20.9 per cent at the end of the preceding quarter.

It explained: "The development was attributed largely to the 4.5 per cent decline in currency outside the banking system. Total deposits at the CBN amounted to N6.396 trillion, indicating a decline of 0.13 per cent, in contrast to the growth of 6.9 per cent at the end of the preceding quarter.

"The development reflected largely, the 0.23 and 0.18 per cent fall in the deposits of the private sector and federal government, respectively, which more than off-set the marginal increase in deposits of Deposit Money Banks."

Source: ThisDay