A total of $43 billion in foreign currency flowed through the Central Bank of Nigeria as outflows in 2020.
This was according to the latest data obtained from the CBN.
This compares to the $66 billion in foreign currency outflows via the CBN in 2019. The CBN received a total foreign currency inflow of $40 billion during the year compared to $62 billion a year earlier.
The CBN has recorded a deficit or a net foreign currency outflow of $3 billion in 2020 (2019: $4 billion). Nigeria faced an excruciating foreign currency crisis in 2020 as the fall in oil prices, global lockdown due to COVID-19 and a dearth in capital importation affected Nigeria’s foreign currency balances forcing multiple devaluation during the year and a wide disparity between the official and parallel market exchange rate.
In prior years, the central bank has had to rely on oil dollars, non-oil imports and capital importation to boost the country’s foreign currency balances.