Tag: Forex inflow

US remittance tax threatens Nigeria’s FX inflows

Aminu Imam
FX inflows

Nigeria’s foreign exchange earnings face a new threat as the US Congress considers a 5% tax on diaspora remittances. The proposed bill, introduced by House Republicans, targets money transfers abroad and could reduce funds sent to countries like Nigeria. The tax, payable by senders and collected quarterly by the US Treasury, exempts verified US citizens and remittances sent through authorized channels. A final House vote is expected before May 26. The US remains the world’s top source of remittances, with $79 billion sent abroad in 2022. Nigeria received $20.1 billion,…

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‘Forex remittances quadruple to $1.3bn in February’ – CBN

Aminu Imam

The Central Bank of Nigeria (CBN) has said overseas remittances into the country rose to $1.3 billion in February 2024 compared to $300 million in the preceding month. The Bank’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, disclosed in a press briefing in Abuja. The CBN also 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. She noted foreign investors purchased over $1 billion of…

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Foreign investors hit brakes on Nigeria over volatile naira

Aminu Imam

Foreign investors are holding off on new investments into Nigeria until the its currency, the Naira finds some stability. According to a source familiar with the matter, “Foreign investors that thought the peak of the exchange rate would be N1,550/$ and came in have now picked mark-to-market losses on the currency. “They are touching their stop losses and are reversing their inflows. And we don’t have the liquidity to support that”. A fresh inflow of around $700 million was expected to come but that has now been suspended as investors…

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Saudi Arabia to support CBN with substantial FX deposit – FG

Aminu Imam

The Saudi Arabian government has promised to finance the renovation of Nigeria’s refineries and to continue the government’s foreign currency (FX) reforms. These promises were made by Saudi Crown Prince Mohammed bin-Salman during a private meeting with President Tinubu in Riyadh, outside the Saudi-Africa Summit. The Saudi government would provide a sizeable foreign exchange deposit to support the Central Bank’s ongoing reforms of Nigeria’s foreign exchange regulation and increase Nigeria’s forex liquidity. Prince bin-Salman commended the economic reforms being implemented by President Tinubu, and expressed the commitment of the Saudi…

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Forex: CBN crashes dollar, releases $6.7bn to banks

Aminu Imam

The Nigerian currency, the Naira, is experiencing a resurgence against the dollar, as the federal government begins to clear backlogs. The foreign exchange (forex) market witnessed a significant turnover of $2.23 billion in October. The naira also rebounded on the parallel and official markets, as CBN reportedly supplied banks with $6.7 billion to clear backlogs. The volume of dollars traded in the Nigerian Foreign Exchange Market (NAFEM) window increased by 23.8% monthly to $2.23 billion in October 2023 from $1.8 billion in September, showing an increase in Forex inflows. FMDQ data…

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$10bn forex inflow expected in weeks – Finance Minister

Aminu Imam

Minister of Finance and Coordinating Minister of the Economy Wale Edun, has disclosed that around $10 billion of forex inflows is expected within weeks rather than months. Edun stated this during a panel session at the ongoing Nigeria Economic Summit, where he answered questions about stabilising the foreign exchange market and enshrining liquidity in the market. According to him, “In addition, from the supply of foreign exchange through NNPC, increased production, reduced expenditure, from transactions such as forward sales from our discussions with sovereign wealth funds that are ready to invest…

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