CBN Recorded the Highest Remittance Inflow of $553 Million in July.
The Central Bank of Nigeria has announced a notable increase in remittance inflows, which reached $553 million in July 2024. This marks a remarkable 130% rise compared to the same period in 2023. The apex bank highlighted that this amount is the highest monthly total of inflows ever recorded, showcasing the effectiveness of its ongoing initiatives to improve liquidity in Nigeria’s foreign exchange market.
In a statement released by Sidi Ali, the acting Director of Corporate Communications at the CBN, it was emphasized that the increase in remittances reflects the bank’s commitment to enhancing the foreign exchange landscape in Nigeria. The CBN’s efforts have been geared towards ensuring a stable and accessible foreign exchange market for all stakeholders.
The CBN attributed the substantial growth in remittance receipts to various policy measures that have been implemented. These measures have been designed to facilitate easier and more efficient remittance processes, thereby encouraging greater participation from the diaspora.
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Among the strategies employed by the CBN are granting licenses to new International Money Transfer Operators (IMTOs) and implementing a willing buyer-willing seller model. These initiatives aim to create a more competitive environment for remittance services, ultimately benefiting consumers and businesses alike.
Furthermore, the CBN has ensured that IMTOs have timely access to naira liquidity, which is crucial for their operations. This access enables these operators to provide better services and more favorable rates for remittance recipients in Nigeria.
Diaspora remittances have proven to be an essential source of foreign exchange for Nigeria, complementing both foreign direct investment and portfolio investments. The increase in these inflows underscores their importance in supporting the country’s economy and stabilizing the foreign exchange market.
The CBN expressed its commitment to continuing these initiatives, aiming to double formal remittance receipts within a year. The recent surge in remittances serves as a strong testament to the success of the CBN’s ongoing efforts to enhance the foreign exchange environment in Nigeria.
