The Central Bank of Nigeria (CBN) announced a substantial increase in remittance inflows, reaching $553 million in July 2024, marking a 130% rise from the same period in 2023.
This figure is the highest monthly inflow on record and demonstrates the success of CBN’s policies aimed at enhancing liquidity in Nigeria’s foreign exchange market.
The significant growth in remittance receipts is attributed to various policy measures, including the licensing of new International Money Transfer Operators (IMTOs), the implementation of a willing buyer-willing seller model, and the facilitation of timely naira liquidity access for IMTOs.
The CBN emphasized that diaspora remittances have become a vital source of foreign exchange, complementing foreign direct investment and portfolio investments.
In addition to the increase in remittances, CBN highlighted the recent decline in Nigeria’s year-on-year headline inflation rate in July 2024, the first decrease in 19 months.
The CBN attributes this improvement to its monetary policy tightening measures, which are beginning to yield positive results in stabilizing the economy and controlling inflation.
The CBN reiterated its commitment to monitoring market conditions and adjusting policies as necessary to sustain and potentially increase remittance flows into Nigeria, further strengthening the country’s foreign exchange market and overall economic stability.