The Central Bank of Nigeria (CBN) announced today that diaspora remittances climbed by 130 percent year on year to $553 million in July 2024, compared to the same month in 2023.
Mrs. Hakama Sidi Ali, CBN’s Acting Director of Corporate Communication, made the announcement in a statement. According to the top bank, the steady increase in remittances is attributed to recent initiatives aimed at increasing liquidity in the country’s foreign exchange market.
The Central Bank of Nigeria (CBN) recorded a 130% rise in remittance inflows to $553 million in July 2024 compared to the same month in 2023. “The CBN’s continued efforts to improve liquidity in Nigeria’s foreign exchange market resulted in the largest monthly total inflows on record.
“The significant increase in remittance receipts is due to policy measures implemented by the CBN to improve liquidity in Nigeria’s foreign exchange market. “These measures include granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and ensuring IMTOs have timely access to naira liquidity.”
“Diaspora remittances are an important source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments.” “The CBN’s actions have encouraged ongoing increase in these inflows, which is consistent with the institution’s goal of doubling formal remittance receipts within a year.
The CBN’s efforts to improve public confidence in the foreign exchange market, strengthen the banking system, and promote price stability have resulted in an increase in remittances, which is crucial for long-term economic growth.
“Recent statistics from the National Bureau of Statistics (NBS) revealed that Nigeria’s year-on-year headline inflation rate dropped in July 2024, for the first time in 19 months, indicating that the CBN’s monetary policy tightening measures are working.
“The CBN thinks that these actions will help it achieve its overall goal of preserving foreign exchange market stability. “The Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria.”
