In retrospect: Nigeria attracted $2.14bn forex in Q4 2020

Dynamics Within the FX Market

In retrospect: Nigeria attracted $2.14bn forex in Q4 2020


 

The Nigerian economy attracted a total sum of $2.14 billion as foreign exchange inflow in the fourth quarter of 2020, pushing the total forex to $23.60 billion from $21.46bn in the third quarter, figure from the Central Bank of Nigeria revealed.

The CBN stated this in its report on ‘Foreign exchange flows through the economy’ which was obtained by Business Metrics on Wednesday.

The report showed that for the fourth quarter, despite that there was an increase in foreign exchange flows through the economy in the review quarter compared with the preceding quarter due to the reopening of most economies including Nigeria, the second wave of COVID-19 hampered a return to the levels experienced in the corresponding quarter of 2019.

Part of the report read, “Consequently, aggregate foreign exchange inflow in the fourth quarter of 2020 was $23.6 billion, compared with $21.46 billion and $36.32 billion in the third quarter of 2020 and corresponding quarter of 2019, respectively.

This indicated an increase of 10.0 per cent over the previous quarter, but a decline of 35 per cent below the level in the corresponding quarter.

It added that foreign exchange outflow through the economy rose by 13.1 per cent above the third quarter of 2020 to $8.38 billion in the review period but declined by 51.5 per cent below the level in the corresponding quarter of 2019.

Accordingly, foreign exchange flow through the economy resulted in a net inflow of $15.22 billion in Q4, 2020, compared with the net inflow of $14.05 billion and $19.05 billion in the preceding quarter and corresponding quarter of 2019 respectively.