Nigeria Records $10.22bn Forex Inflows In May – CBN

The aggregate foreign exchange inflow into the Nigerian economy amounted to US$10.22 billion, showing an increase of 3.2 per cent above the level at the end of the preceding month, the Central Bank of Nigeria (CBN) has revealed. According to the central bank’s economic report for May, the increase was as a result of a…”
Yusuf
July 3, 2019 12:46 pm

The aggregate foreign exchange inflow into the Nigerian economy amounted to US$10.22 billion, showing an increase of 3.2 per cent above the level at the end of the preceding month, the Central Bank of Nigeria (CBN) has revealed.

According to the central bank’s economic report for May, the increase was as a result of a 4.3 per cent and 2.6 per cent rise in inflows through the Bank and Autonomous sources, respectively.

On the other hand, aggregate foreign exchange outflow from the economy, at US$3.97 billion, fell by 18.5 per cent and 22.9 per cent below the levels in the preceding month and the corresponding period of 2018, respectively. This was attributed, mainly, to the 15.8 per cent and 37.8 per cent decline in outflows through the Bank and autonomous sources, respectively.

But inflow through autonomous sources, rose by 2.6 per cent to US$6.21 billion in May 2019, compared with the level at the end of April 2019. Outflow from autonomous sources, on month-on- month basis, fell by 37.8 per cent to US$0.37 billion, reflecting the decline in both visible and invisible imports.

Accordingly, foreign exchange flows through the economy, resulted in a net inflow of US$6.26 billion in the review period, Similarly, aggregate sectoral utilisation of foreign exchange fell by 29.7 per cent to US$2.83 billion in May 2019, compared with the level in the preceding month. The invisible sector accounted for the bulk (63.7 per cent) of total foreign exchange disbursed in the review month, followed by components of the visible sub-sector listed in descending order as follows: Industrial sector, 15.7 per cent; manufactured products, 7.5 per cent; food products, 5.9 per cent; minerals and oil, 5.2 per cent; transport, 1.6 per cent; and agricultural products, 0.4 per cent.

“Total assets and liabilities of the banks amounted to N38,641.8 billion at end-April 2019, showing a 0.5 per cent increase, compared with the level at the end of the preceding month. Funds were sourced, mainly, from mobilisation of time, savings and foreign currency deposits, drawdown on reserves and reduction in claims on central bank. The funds were used mainly, to acquire foreign assets, reduce claims on federal government and to pay off demand deposits.

“Banks’ credit to the domestic economy rose by 0.6 per cent to N20,973.8 billion at end-April 2019, compared with the level at the end of the preceding month. The development was attributed to the rise in claims on the federal government.

“Total specified liquid assets of banks stood at N13,634.3 billion at end-April 2019, representing 60.3 per cent of their total current liabilities. At that level, the liquidity ratio was 0.1 percentage point below the level at the end of the preceding month but was 30.3 percentage points above the the stipulated minimum liquidity ratio of 30.0 per cent,” it added.

The report revealed that at N2.159 trillion, currency-in-circulation, on month-on- month basis, rose by 0.3 per cent at end-April 2019. This was in contrast to the respective decline of 3.9 per cent and four per cent at the end of the preceding month and the end of the corresponding period of 2018. The development relative to the preceding month reflected the increase in demand deposit component.

Deposits of the federal government, banks and the private sector with the CBN, on month-on-month basis, rose, relative to the level at the end of the preceding month, it stated. Overall, aggregate deposit at the CBN increase by 12.8 per cent to N15.746 trillion at the end of April 2019.

According to the report, the Agricultural Credit Guarantee Scheme (ACGS) guaranteed a total of N259.1 million to 1,397 farmers in May 2019. The amount represented a decrease of 24.4 per cent and 2.7 per cent below the levels in the preceding month and the corresponding period of 2018, respectively. Sub-sectoral analysis showed that food crops got the largest share, amounting to N136 million (52.5%) guaranteed to 860 beneficiaries, followed by livestock, N44.9 million (17.3%) guaranteed to 171 beneficiaries. The sum of N41.8 million (16.1%) was guaranteed to cash crops sub-sector, in favour of 226 beneficiaries. Fisheries, ‘others’ and Mixed crops received N22.8 million (8.8%), N10.9 million (4.2%) and N2.8 million (1.1%), guaranteed to 77, 45 and 18 beneficiaries, respectively.

Source: ThisDay

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