CBN records $5.2bn pos­i­tive FX in­flow

Daily Trust - - BUSINESS - From Sun­day Michael Ogwu, Lagos

An anal­y­sis by FBNQuest has re­vealed that the net for­eign Cur­rency (fx) flows through the Cen­tral Bank of Nigeria (CBN) were neg­a­tive by US$760m in May but pos­i­tive over the 12-month pe­riod to the tune of US$5.12bn.

In­flows through the CBN, which con­sist of monies from the oil econ­omy and the non-oil pub­lic sec­tor, de­clined from US$2.87bn to US$2.26bn in May.

Out­flows, in con­trast, rose from US$2.16bn to US$3.02bn in the same month, which the com­men­tary at­trib­uted to in­ter-bank uti­liza­tion, ex­ter­nal debt ser­vice, draw­ings un­der let­ters of credit and an un­spec­i­fied “fx special pay­ment”.

The re­port in­di­cated fur­ther that, the surge in in­flows to US$5.06bn in Fe­bru­ary co­in­cides with the sale of Eurobonds to in­ter­na­tional in­vestors.

The pick-up in out­flows through the CBN since Fe­bru­ary co­in­cides with the CBN’s mul­ti­ple cur­rency prac­tices. We re­call that May was the full month of oper­a­tion for the in­vestors’ and ex­porters’ win­dow (NAFEX).

Ac­cord­ing to the an­a­lyst: “We are not com­par­ing ap­ples with ap­ples but we note that the net in­flow through the CBN of US$5.12bn over the 12 months is con­sis­tent with the in­crease in gross of­fi­cial re­serves of US$3.94bn over the same pe­riod.”

The data also cap­tured flows through the econ­omy as a whole (au­ton­o­mous and CBN trans­ac­tions). They show au­ton­o­mous in­flows of US$3.52bn in May.

“Re­mit­tances alone are run­ning at close to US$2bn per month ac­cord­ing to the bal­ance of pay­ments. Au­ton­o­mous out­flows amounted to just USS160m in the month. So the net in­flow for May was US$3.36bn for au­ton­o­mous funds and US$2.60bn for the econ­omy (ad­justed for the CBN).” It added.

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