The Central Bank of Nigeria has revealed that there was a substantial rise in foreign inflows in February 2024.
During a recent press briefing in Abuja, Mrs. Hakama Sidi Ali, the Bank’s Acting Director of Corporate Communications, disclosed that overseas remittances reached $1.3 billion in February, a notable increase from $300 million in January.
Furthermore, foreign investors purchased over $1 billion of Nigerian assets last month, with total portfolio flows for the early part of 2024 reaching at least $2.3 billion.
This surge in foreign exchange inflows is attributed to adjustments in benchmark interest rates and heightening investor interest in short-term sovereign debt.
The Governor of the apex bank, Mr. Olayemi Cardoso’s strategic objectives, outlined during last month’s Monetary Policy Committee (MPC) meeting and a conference call with foreign portfolio investors, aim to curb inflation, stabilise the exchange rate, and boost confidence in the banking system and overall economy.
To further sustain increases in foreign currency reserves and enhance liquidity in the foreign exchange market, the CBN plans to sell N1.64 trillion in Nigeria Treasury Bills in the second quarter of 2024, between March and May. This new offer is a refinancing of existing maturing treasury bills of different tenures.
