Economic crisis worsens as forex inflows fall by $9.58bn

Foreign exchange inflows into the economy declined in the fourth quarter of 2021, owing to lower receipts from the Central Bank of Nigeria and autonomous sources.

This is an indication of a worsening crisis for a forex-strapped economy.

The latest figures from the Central Bank of Nigeria’s quarterly report on “Foreign Exchange Flows through the Economy” said the FX inflows fell by 31.7 per cent.

It stated “Foreign exchange inflow into the economy fell by 31.7 per cent to $20.62bn, from $30.2bn in the preceding period. The development was driven by the 45.5 per cent and 14.4 per cent lower inflow through the CBN and the autonomous sources, respectively.

Foreign exchange inflow through the Bank at $9.18bn fell below the $16.83bn in the preceding quarter as both oil and non-oil receipts declined, as a result of lower receipts from interest on reserves and interbank swaps.”

A disaggregation showed that proceeds from oil-related sources declined by 12.2 per cent to $1.63bn, relative to the preceding period.

Similarly, receipts from non-oil sources fell to $7.54bn, compared with $14.97bn in the preceding quarter.

Foreign exchange inflow through autonomous sources declined to $11.44bn, relative to $13.37bn in the preceding period, driven mainly by a reduction in over-the-counter purchases and non-oil export receipts.

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