Forex inflow through CBN hits $6.97bn in three months

Foreign exchange inflow through the Central Bank of Nigeria (CBN) in the third quarter of 2020 stood at $6.97bn.

The CBN disclosed this in the third quarter economic report.

It said, “Foreign exchange inflow through the Central Bank of Nigeria decreased in the third quarter of 2020, largely due to a reduction in non-oil inflow.

“During the review period, aggregate foreign exchange inflow through the CBN stood at $6.97bn, a decrease of 30.7 per cent and 43.6 per cent below the levels in the second quarter of 2020 and the corresponding quarter of 2019, respectively.

“The development was attributed to a decline in both oil and non-oil receipts by 9.7 per cent and 44.7 per cent, respectively, below the levels in the preceding quarter and corresponding quarter of 2019.”

The CBN said the decrease in non-oil receipts followed reversion to normal trend after the one-off IMF facility in the previous quarter, while that of oil receipts was as a result of the weak global demand for crude oil, owing to fragile global economic recovery.

Disaggregation of inflow through the bank indicated that oil and non-oil receipts were $2.35bn and $4.62bn, respectively.

Further analysis of non-oil receipts showed that interbank swaps, other official receipts, and TSA and third-party receipts increased by 255.6 per cent, 40.4 per cent and 6.8 per cent to $1.60bn, $0.99bn and $0.95bn over their respective levels in the second quarter of 2020.

However, foreign exchange purchases, Deposit Money Bank cash receipts and unutilised IMTO funds declined by 14.9 per cent, 68.1 per cent and 11.5 per cent to $0.56bn, $0.10bn and $0.24bn, below the levels in the preceding quarter, respectively.

Unutilised funds from FX transactions, returned payments and interest on reserves and investments fell to $0.09bn, $0.02bn and $0.06bn, respectively, below the levels in the preceding quarter.