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Remittance inflows to Nigeria’s central bank reach record $553 million in July

Published

2 months ago

August 21, 2024

Remittance inflows have increased significantly, according to the Central Bank of Nigeria, reaching $553 million by July 2024. According to the statement, the sum represents a 130% increase from the same period in 2023.

The amount signified the largest monthly total inflows on record, according to a statement released on Tuesday by the acting Director of Corporate Communications at the apex bank, Sidi Ali. The statement also highlighted the CBN’s continuous efforts to improve liquidity in Nigeria’s foreign exchange market.

The statement read, “The CBN has reported a significant increase in remittance inflows, reaching $553m in July 2024, a 130 per cent increase from the corresponding period in 2023. This figure represents the highest monthly total inflows on record and reflects ongoing efforts by CBN to enhance liquidity in Nigeria’s foreign exchange market.”

The statement clarified that the CBN’s regulatory initiatives to improve foreign exchange market liquidity in Nigeria were the cause of the notable increase in remittance receipts.

Furthermore, it stated that remittances from Nigeria’s diaspora have continued to be a vital source of foreign money, supporting both portfolio investments and foreign direct investment.

It said, “These measures included granting licenses to new International Money Transfer Operators, 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.’

According to the CBN, these inflows have continued to rise as a result of its activities, which are in line with the organization’s goal of doubling official remittance receipts in a year.

The statement added, “The increase in remittances is a strong testament to the success of the CBN’s ongoing efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability, which is essential for sustained economic growth.”

For the first time in 19 months, Nigeria’s headline inflation rate decreased year over year in July 2024, according to recent statistics from the National Bureau of Statistics.

The development, according to CBN, is unmistakable proof that its efforts to tighten monetary policy are having an impact.

“The CBN anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market. The Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria,” the statement added.

In a related development, the bank reported that the nation’s inflation rate dropping in July was an indication that its monetary policies were starting to take effect.

The CBN emphasised this development as proof of the efficacy of its policies for bringing the economy under control and containing inflationary pressures.

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IMF assessing implications of Senegal financial audit

Published

20 hours ago

October 17, 2024

Ifeoluwa Dada

The International Monetary Fund (IMF) has revealed that a staff team has travelled to Senegal to begin evaluating the ramifications of data adjustments that emerged from a government audit of previous and ongoing initiatives that the IMF had sponsored.

IMF staff will continue to collaborate closely with the authorities in the upcoming weeks to assess the macroeconomic impact and lay out the next measures, the Fund said in a statement, even though the government’s findings have not yet been certified.

Last month, an audit of Senegal’s finances, commissioned by recently elected President Bassirou Diomaye Faye, revealed that the country’s deficit at the end of 2023 was over 10% of GDP, as opposed to the 5% that the previous administration had estimated.

Following the Fund’s evaluation in June, the government announced that it had chosen not to proceed with Senegal’s request for an IMF disbursement in July. Since then, the West African nation has been in talks with the IMF about corrective action.

From October 9 to October 16, an IMF staff team travelled to Senegal to examine the preliminary audit findings.

The next steps “will include assessing whether any misreporting occurred during previous and current IMF-supported programs”, the statement said.

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Namibia central bank drops key rate again to boost growth

Published

20 hours ago

October 17, 2024

Ifeoluwa Dada

The Monetary Policy Committee (MPC) of Namibia’s central bank unanimously decided to cut the repo rate by 25 basis points to 7.25%, the same size of cut as at the August meeting.

The central bank cited the country’s economy’s need for additional support and the unexpectedly rapid decline in inflation as reasons for the second consecutive meeting of its main interest rate cut.

“The MPC noted the growing momentum in the international monetary policy easing cycle, the retreat in domestic inflation over the medium term, along with the recent downside surprise in the September 2024 inflation print,” Bank of Namibia Governor Johannes Gawaxab said in a statement accompanying the decision.

The nation in southern Africa saw its annual inflation decline sharply from 4.4% in August to 3.4% in September.

The central bank’s most recent meeting on Wednesday downgraded the average inflation forecast for this year from 4.7% to 4.3%.

The revision was ascribed to a more optimistic outlook for global oil prices as well as a more robust domestic currency rate.

According to the bank, credit extension to the private sector is still muted, indicating that more assistance for the home economy is necessary.
“The domestic economy, while growing at a moderate pace, was operating below full capacity,” Gawaxab said.

In 2024, growth is expected to drop to 3.1% from 4.2% in 2023.

Regarding a $750 million redemption of Eurobonds that is scheduled for late 2025, Namibia’s governor of the central bank stated that 82% of the $500 million it wishes to retire at maturity has already been put aside.

The government is still hoping to refinance the $250 million that is left! stated Gawaxab.In 2024, growth is expected to drop to 3.1% from 4.2% in 2023.