By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria recorded Foreign Exchange (FOREX) inflow of US$3.34 billion through the Central Bank in the Month of July 2012.

This is contained in the Economic Report for the Month of July 2012 by the CBN.

Similarly, the country recorded an outflow of US$2.93 billion in the review period compared to a net inflow of US$0.41 billion and net outflow of US$1.4 billion recorded in June 2012

“Relative to the level in the preceding month, inflow rose by 6.0 percent, but showed a decline of 28.1 percent below the level in the corresponding period of year 2011” the CBN Report said.

According to the Report, the increase in inflow during the review period reflected a 57.3% rise in the receipts from crude oil sales; while on the other hand, outflow fell by 36.3% and 23.5% below the levels in the preceding month and the corresponding period of 2011 respectively.

“The development relative to the preceding month was attributed to the 38.1% reduction in wDAS utilization” the Report affirmed.

A breakdown of the total wDAS utilisation, showed that wDAS sales accounted for the bulk (73.8%) of the total, cash sales to Bureau-de-Change (BDC) operators (15.9%) and WDAS-forward contract Provisional data on aggregate foreign exchange flows through the economy indicated that total inflow was US$7.83 billion, representing a decrease of 1.5% and 19.3% below the levels at the end of the preceding month and the corresponding month of 2011, respectively.

The Report further affirmed the decline in inflow relative to the level in the preceding month was due largely to the 19.3% fall in receipts from CBN due to the 96.7% fall in interest on reserves and investments. “Inflow through the CBN accounted for 42.7% of the total, while inflow from autonomous sources accounted for the balance of 57.3%” the July 2012 Economic Report said.

According to the Report, at US$3.22 billion, Oil Sector receipts increased by 5.7% above the level in the preceding month and accounted for 41.1% of the total inflow. “On a month–on–month basis, non-oil public sector inflow, at US$119.13 million, rose by 15.8% and accounted for 1.5% of the total inflow, while autonomous inflow, at US$4.49 billion, fell by 6.4%, accounting for 57.3% of the total” the Report said.

On its part, at US$3.10 billion, aggregate foreign exchange outflow from the economy fell by 36.0% below the level in the preceding month.

“Thus, foreign exchange flows through the economy resulted in a net inflow of US$4.7 billion in the month under review, compared with US$3.10 billion and US$5.76 billion in the preceding month and the corresponding month of 2011, respectively.

The outcome reflected, largely, a decline in the wDAS utilisation of foreign exchange during the month” the CBN’s July Economic Report said.

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