Hardship From Subsidy Removal & Floating Naira: Tinubu Reforms Pay Of With Billions In February 2024

Hardship From Subsidy Removal & Floating Naira: Tinubu Reforms Pay Of With Billions In February 2024 – Brooom

The CBN has reported a significant rise in foreign inflows in February 2024, driven by higher remittance payments from Nigerians living abroad and a spike in the purchase of naira assets by foreign portfolio investors. This was disclosed by the Acting Director of Corporate Communication Mrs Hakama Sidi Ali in a press briefing in Abuja.

This oversea remittance ibto Nigeria has rising to $1.3 billion from $300 million in January 2024.

Mrs Sidi Ali noted in her briefing that foreign investors purchased over $1 billion of Nigerian assets in February.

According to the email statement by the spokes person of CBN Sidi Ali to Brooom Nigeria  reads:

• “The Bank’s data indicates that overseas remittances rose to US$1.3 billion in February 2024, more than four times the US$300 million received in January.
• “Foreign investors purchased more than US$1 billion of Nigerian assets last month, with total portfolio flows of at least US$2.3 billion recorded thus far in 2024 compared to US$ 3.9 billion seen in total for last year.”
• The scarcity of dollars in the domestic market has significantly contributed to the currency’s weakness. The central bank has been actively addressing this issue by urging Nigerians residing abroad to repatriate their funds through official channels, aiming to stabilise the currency.
• Part of the reforms the CBN has introduced includes clearing the backlog of forex obligations which the CBN noted would be fully cleared in a few days.
• Also, the apex bank has mooted plans to establish a singular foreign currency (FCY) gateway bank that will centralise all correspondent banking activities and provide incentives to individuals who hold foreign currencies outside the formal banking system.
• Other measures include investigating and resolving FX backlogs, restricting forex allocation for overseas education and medical trips, augmenting the minimum share capital for BDCs, and targeting FX market speculators.
• Through these reforms, the CBN is steadfast in its commitment to stabilizing the naira and enhancing the overall health of Nigeria’s foreign exchange market.

“All the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off,” Governor Olayemi Cardoso was also quoted in a statement.