FX outflows for imports, invisible jump by 146.15% in May – CBN
 Posted Date : 2020-09-10

Foreign exchange outflow through autonomous sources mainly for imports and invisibles rose significantly by 146.15% to $0.32 billion in May 2020, above the leveled of $0.13 billion in April 2020, because of partial ease in lockdown restrictions. 

Foreign exchange inflows into the economy fell by 43.2% in May 2020. Inflows through the CBN and autonomous sources were negatively impacted.  On a month-on-month basis, foreign exchange flows, into the economy declined to $5.52 billion in Many 2020.

However, interbank sales declined by 10.0% to $0.055 billion, below the $0.062 billion sales in April 2020.  In <ay 2020, sales to BDCs remained suspended as international travels were yet to re-start.

The average turnover at the I&E window fell by 4.9% from $0.043 billion in April to $0.041 billion in May 2020.

The decline in inflow, relative to the level in April 2020, was attributed to the lower receipts from oil sources, which fell sharply by 55.2% because of the continued fragility in global crude oil demand.  Inflow through autonomous sources, particularly invisible purchases, declined by 7.0% to $3.51 billion, relative to the preceding month, while there was a 66.2% fall in inflow through the CBN, which stood at $2.01 billion in May 2020.

At N443.33/$, the naira depreciated by 5.2% and 18.9% at the BDC segment, relative to N420.15/$ in the preceding month and N359.75/$ in May 2019. Consequently, the interbank/BDC premium widened from 16.4% in the preceding month to 22.8% in May 2020. The premium between the BDC/I&E also widened to 14.8% from 9.1%, in the preceding month.       





Business Day, 9 September 2020