Nigeria's forex market records upsurge as inflows hit $3.75 billion

Increased deposits from both local and international sources accounted for a larger portion of the inflow.The Central Bank of Nigeria's (CBN) attempts to revitalise the economy of the nation through new reforms have paid off, as seen by the increase in foreign exchange inflow.The Nigerian Autonomous Foreign Exchange Market (NAFEM) had a 41.7% increase in total currency input in March 2024, reaching $3.75 billion—the biggest amount since 2019 ($6.07 billion), according to FMDQ statistics. The data further showed that a greater part of the inflow stemmed from increased deposits from both domestic (59.0%), and foreign sources (41.0%) with a large chunk from non-government sources, with less inflows from the CBN. An analysis of the breakdown showed a 43.2% increase in the inflow recorded from local sources from $1.54 billion received in February 2024, to $2.21 billion in March 2024 driven by higher asset accumulations from Individuals (+405.8 per cent m/m), Non-Bank Corporates (+157.7% m/m), and Exporters (+14.6% m/m) segments, while inflow from the CBN (-65.7% m/m) declined.