The Central Bank of Nigeria (CBN) has announced an unprecedented rise in remittance inflows, totaling $553 million in July 2024. This figure marks a 130% increase compared to the same period in 2023 and is the highest monthly inflow on record, highlighting the success of CBN’s recent policy measures aimed at enhancing liquidity in Nigeria’s foreign exchange market.

The substantial growth in remittances is largely credited to the CBN’s strategic initiatives. These 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. These policies have been pivotal in boosting confidence in the foreign exchange market and supporting the continuous rise in diaspora remittances, which are a critical source of foreign exchange for Nigeria.

Diaspora remittances not only supplement foreign direct and portfolio investments but also play a vital role in maintaining economic stability. The CBN’s measures align with its broader goal of doubling formal remittance receipts within a year, further strengthening Nigeria’s financial system and fostering sustained economic growth.

Recent data from the National Bureau of Statistics (NBS) supports this positive outlook, showing a slowdown in Nigeria’s year-on-year headline inflation rate for the first time in 19 months, indicating that the CBN’s monetary policies are yielding favorable outcomes.

Looking ahead, the CBN is committed to monitoring market conditions closely and adjusting policies as needed to sustain and increase remittance inflows, ensuring continued stability in the foreign exchange market.