CBN reports 5.8% jump in forex inflow for Aug., amid exodus of multinationals
Amid a reported foreign exchange backlog of around $7 billion owed US Dollar-denominated multinational companies in mostly the manufacturing and aviation sectors of the economy by the Central Bank of Nigeria (CBN), the regulatory bank has now disclosed that the country recorded $11.11 billion aggregate forex inflow in July and August, this year.
According to figures obtained in the CBN’s August economic report on foreign exchange flows through the economy, the month’s figure rose by 5.8 per cent from July.
It would be recalled that the Organised Private Sector (OPS) in Nigeria had decried the seeming mass exit of manufacturing firms out of the country’s business environment, describing the trend as negative for the country’s economy.
The reaction follows the latest exit of another multi-national, Procter & Gamble (P&G), coming barely four months after the pull-out of pharmaceutical giants, GlaxoSmithKline (GSK).
All the exiting multi-nationals in the manufacturing sector have cited an inclement operating environment in the country, including dearth of foreign exchange to run their operations as reasons for their actions, among others.
This is also as the CBN had already confirmed that it has a foreign exchange backlog to the tune of around $7 billion which makes it more difficult for US Dollar-denominated companies.
Last August, pharmaceutical giants, GSK announced exiting the Nigerian business space after evaluating ‘various other options,’ adding that the decision of the Board of GlaxoSmithKline Consumer Nigeria Plc ‘has concluded that there is no alternative but to cease operations.’
Meanwhile, the regulatory now says Nigeria recorded $11.11 billion aggregate foreign exchange inflow in July and August, representing a 5.8 per cent rise from the figure reported in July, this year.
“The economy recorded a higher net foreign exchange inflow in August 2023, driven, mainly, by increased inflow from autonomous sources. Foreign exchange flows through the economy recorded a net inflow of $2.33bn, an increase of 2.9 per cent, relative to the $2.27bn in July 2023.
‘Aggregate foreign exchange inflow into the economy increased by 5.8 per cent to $5.71bn in August, compared with the $5.40bn, in the preceding month,” the CBN report read.
According to the report, foreign exchange outflows also rose by 8.0 per cent to $3.38bn, in August, from $3.13bn in the preceding month, further adding that foreign exchange inflow through the Bank declined by 5.9 per cent to $2.44bn in August 2023, from $2.59bn in July 2023.
Outflow through the bank, however, rose by 6.3 per cent to $2.98bn, from $2.80bn in the preceding month.
Outflow through the bank, however, rose by 6.3 per cent to $2.98bn, from $2.80bn in the preceding month.
