CBN Reports 130% Surge in Diaspora Remittances, Reaching $553 Million in July 2024

 

The Central Bank of Nigeria (CBN) has announced a remarkable 130% increase in diaspora remittances, with inflows reaching $553 million between July 2023 and July 2024. This significant rise, compared to the previous year's figures, underscores the effectiveness of the CBN's recent policy initiatives aimed at enhancing liquidity in the country's foreign exchange market.

In a statement released by the CBN's Acting Director of Corporate Communication, Mrs. Hakama Sidi Ali, the apex bank highlighted that the July 2024 remittance figure represents the highest monthly inflow on record. The CBN attributed this growth to strategic measures designed to improve foreign exchange liquidity, including the issuance of licenses to new International Money Transfer Operators (IMTOs), the adoption of a willing buyer-willing seller model, and ensuring timely naira liquidity for IMTOs.

The CBN emphasized the importance of diaspora remittances as a critical source of foreign exchange for Nigeria, complementing both foreign direct investment and portfolio investments. The bank's initiatives have not only fostered continued growth in remittance inflows but have also aligned with its goal of doubling formal remittance receipts within a year.

The statement further noted that the increase in remittances reflects the success of the CBN's efforts to boost public confidence in the foreign exchange market, support a robust and inclusive banking system, and promote price stability—an essential factor for sustained economic growth.

Recent data from the National Bureau of Statistics (NBS) indicated a slowdown in Nigeria's year-on-year headline inflation rate in July 2024, marking the first decline in 19 months. This positive development is attributed to the CBN's monetary policy tightening measures, which are beginning to yield results.

The CBN reiterated its commitment to monitoring market conditions and adjusting its policies as needed to facilitate even greater remittance flows into Nigeria, with the broader objective of maintaining stability in the foreign exchange market.