The Central Bank of Nigeria (CBN) has reported a significant surge in diaspora remittances for July, with inflows reaching a record high of $553 million, marking the highest monthly total ever recorded.
This notable increase in remittance flows comes as the CBN continues to implement various strategies aimed at improving the liquidity of Nigeria’s foreign exchange market. According to the CBN, remittance inflows in July rose by 130 percent compared to the same period in 2023.
The report, signed by Hakama Sidi Ali, the acting director of corporate communications, credited the growth to several policy measures introduced by the apex bank. These initiatives were designed to boost liquidity in Nigeria’s foreign exchange market.
Among the measures taken by the CBN are the granting of licenses to new International Money Transfer Operators (IMTOs) to enhance competition and attract more remittances into the economy.
Additionally, the CBN has implemented a willing buyer-willing seller model to promote market-driven exchange rates and encourage more foreign currency inflows.
The bank has also ensured that IMTOs have timely access to naira liquidity, which facilitates faster processing of remittance transactions and strengthens their confidence in the Nigerian financial system.
“These measures include granting licences to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to Naira liquidity for IMTOs.
“Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments.
“The CBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year,” Ali stated.
The acting director also emphasised that the upward trend in remittance inflows, was a clear indication of the success of the CBN’s ongoing efforts to enhance public confidence in the foreign exchange market.
In addition to highlighting the positive impact of their initiatives on diaspora remittances, the CBN further pointed to recent data from the National Bureau of Statistics (NBS), which indicated that inflation rates in the country had slowed for the first time in 19 months.
Commenting on the development, the CBN noted that this was a clear sign that the bank’s monetary policy tightening measures, aimed at reining in inflation, were indeed delivering positive results.
The CBN remains optimistic that the successful implementation of these measures will play a key role in maintaining stability in the foreign exchange market and achieving its overall objective of promoting economic growth and stability in Nigeria.
