NIGERIA’S FX INFLOWS RISE 59% TO $4.4BN IN JULY

Nigeria’s foreign exchange inflows increased by 59 per cent to $4.4 billion in July, reflecting stronger dollar liquidity entering the country during the month.

The increase comes amid efforts by the Federal Government and the Central Bank of Nigeria to improve foreign exchange market liquidity and strengthen confidence in the naira.

Higher foreign exchange inflows could provide greater support for businesses and other market participants that require dollars for imports, international transactions, and other obligations.

Analysts said improved inflows could also help ease pressure on the foreign exchange market if the trend is sustained.

The development comes as Nigeria continues to implement reforms aimed at improving transparency and efficiency in the foreign exchange market while attracting more foreign investment and increasing non-oil dollar earnings.

Stronger inflows are particularly important for the country because of its dependence on foreign exchange to finance imports and meet external obligations.

Market watchers will be monitoring whether the increase translates into improved liquidity and greater stability in the naira exchange rate.

Experts said sustained growth in foreign exchange inflows would require stronger export earnings, increased foreign investment, improved remittances, and greater confidence in Nigeria’s economic outlook.

They added that reducing dependence on oil revenue and expanding non-oil exports would be critical to maintaining a stable flow of foreign exchange into the economy.

The July figures therefore provide a positive signal for Nigeria’s external sector, although analysts stressed that the sustainability of the improvement remains key.