The CBN recorded a considerable increase in remittance inflows, reaching $553 million in July 2024—a 130% increase from the same month in 2023—according to the announcement. This amount highlights the CBN’s continuous efforts to improve liquidity in Nigeria’s foreign exchange market and is the largest monthly total inflows ever recorded.

The statement clarified that the CBN’s regulatory initiatives to improve foreign exchange market liquidity in Nigeria were the cause of the notable increase in remittance receipts.

Furthermore, it stated that remittances from Nigeria’s diaspora have continued to be a vital source of foreign money, supporting both portfolio investments and foreign direct investment.

The statement read, “These measures included enabling timely access to naira liquidity for IMTOs, implementing a willing buyer-willing seller model, and granting licenses to new International Money Transfer Operators.”

“Diaspora remittances, which complement both foreign direct investment and portfolio investments, are a vital source of foreign exchange for Nigeria.”

According to the CBN, these inflows have continued to rise as a result of its activities, which are in line with the organization’s goal of doubling official remittance receipts in a year.

The CBN’s continuous efforts to enhance public confidence in the foreign exchange market, build a strong and inclusive banking system, and promote price stability—all crucial for long-term economic growth—have been successful, as evidenced by the rise in remittances, the statement continued.

For the first time in 19 months, Nigeria’s headline inflation rate decreased year over year in July 2024, according to recent statistics from the National Bureau of Statistics.

The development, according to CBN, is unmistakably proof that its efforts to tighten monetary policy are having an impact.

“The CBN expects that these steps will help it achieve its overarching goal of preserving market stability for foreign exchange.” In order to facilitate increased remittance flows into Nigeria, the Bank would keep an eye on market conditions and modify regulations as needed, the statement continued.

In a related development, the bank reported that the nation’s inflation rate dropping in July was an indication that its monetary policies were starting to take effect.

This outcome was emphasized by the CBN as proof of the efficacy of its policies for bringing the economy under control and containing inflationary pressures.