The Central Bank of Nigeria has said that the total foreign exchange inflow into the economy in 2011 amounted to $105.11bn, an increase of 19.3 per cent above the level in 2010.

The CBN, in a publication on Monday, said that the development resulted from a significant growth in inflow through the CBN, which amounted to $47.21bn.

The bank said, “It represented an increase of 69.5 per cent over the level of the previous year and accounted for 44.9 per cent of the total. The inflow through autonomous sources accounted for 55.1 per cent of the total and dropped by $2.40bn or four per cent to $57.90bn.

This development was due to the fall in capital inflow and invisibles (mainly ordinary domiciliary account and over-the-counter purchases) by 48.4 and 4.3 per cent below their levels in 2010, respectively.”

The CBN noted that the total forex outflow grew by 28.8 per cent from the level in 2010 to $50.42bn. A breakdown showed that the outflow through the CBN and autonomous sources rose by 28.6 and 33 per cent over the levels in the preceding year to $48.77bn and U$1.65bn respectively. Consequently, the net inflow position improved by $5.70bn over the position in 2010 to $54.69bn.

Analysis of forex inflow through the CBN showed that receipts from crude oil sales rose by 58.0 per cent above the level in 2010 to $41.33bn and accounted for 87.6 per cent of the total. According to the CBN, the increase in receipts was as a result of the rise in crude oil output and prices in 2011.

It added, “The non-oil component of inflow through the CBN grew significantly by 249 per cent above the level in 2010 to $5.88bn. This was driven by a 145.1 per cent growth in other official receipts to $2.89bn, WDAS purchases of $2bn and forex swaps totalling $0.78bn.”

Earnings on reserves and investments, however, fell by 56.5 per cent to $0.22bn as a result of the continued weak recovery of the financial markets in the developed economies.

Forex outflow through the bank rose by 28.6 per cent to $48.77bn in 2011. A disaggregation of the outflow indicated that the amount that went to the forex market rose by $11.02bn to US$41.19bn and accounted for 84.4 per cent of the total in 2011. Of this, total WDAS utilisation was $34.57bn ($29.78bn in WDAS sales, WDAS-forward $2.79bn and inter-bank sales of $2.0bn).

Foreign exchange sales to BDCs amounted to $5.91bn, accounting for 12.1 per cent of the total and was 10.8 per cent higher than the level in 2010.

Source: Punch/Ademola Alawiye