The Central Bank of Nigeria (CBN) reported that the country’s net total foreign exchange (FX) inflow closed at $72.4 billion in 2022, despite a fast slowing inflow of dollars into the economy.
This is based on information retrieved from the CBN’s newly published economic report for the fourth quarter (Q4) of 2022 on its website. Since then, Nigeria has seen a constant reduction in the amount of dollars entering the economy as a result of falling foreign direct and portfolio investments.
As the apex bank continues to defend the Naira and pay for import bills at the expense of its reserve level, the drop in FX inflows has also had an impact on the country’s external reserves.
Nigeria’s foreign exchange holdings decreased by $3.44 billion in 2022, ending the year at $37.1 billion.
Nigeria continues to experience FX inflows drop following the impact of the COVID-19 pandemic on the global economy.