Nigeria recorded a total of $30.45 billion foreign exchange flow in the fourth quarter of last year, representing 14.5 percent increase over the level in the previous quarter of the year, the Central Bank of Nigeria (CBN) has said.
In its quarterly report released on Thursday, the CBN the forex growth also almost doubt the inflow to Africa’s top economy in 2016, with 87 percent more than the amount of forex inflow in the same quarter of 2016.
Foreign exchange through autonomous sources and inflow through the CBN in the period rose 7.7 percent and 22.7 percent respectively in the last quarter of last year, the report stated.
Nigeria’s main sources of foreign exchange remain crude oil export with the prices of the commodity on the rise in the global market, the West African country continues to record a boost in forex inflows.
Nigeria’s reference crude oil, Bonny Light traded at an average of $62.48 per barrel during the quarter.
The decline in the United States (US) shale oil output and the increased global demand for refined petroleum products, coupled with the extension of the Organisation of Petroleum Exporting Countries (OPEC) production-cut deal to the end of 2018 further boosted price recover during the period, the report says.
The country also recorded a balance of payments surplus of 2.2 percent of the Gross Domestic Product (GDP) in the last quarter of last year.
“Consequently, FX inflow through the CBN stood at $14.71 billion, showing an increase of 22.7 percent and 118.7 percent over the levels in the preceding quarter and the corresponding period of 2016, respectively.
“The increase reflected the rise in receipts from oil and improvement in non-oil proceeds,” the CBN report indicated.
Aggregate outflow through the CBN, on the other hand, fell to $8.38 billion, from $9.34 billion in the preceding quarter, but recorded an increase over the $4.65 billion in the corresponding period of 2016.
According to the report, the decline in outflow relative to the preceding quarter reflected the fall in interbank utilization, third-party MDA transfer, drawings on letters of credits, external debt service, and FX special payments in the review period.
Overall, a net inflow of $6.33 billion was recorded through the central bank, compared with $2.64 billion and $2.08 billion in the preceding quarter and the corresponding period of 2016, respectively