Nigerians consumed $4.1 billion in foreign exchange within three months.
Nigerians consumed more foreign exchange (FX) in the last three months of 2023 compared to the previous quarter, reaching $4.1 billion, a 21% increase, according to the Central Bank of Nigeria (CBN). However, this represents a 46% year-on-year decline and is the second-lowest in eight quarters.
The rise was driven by a 55% quarterly increase in FX for invisible imports, totaling $1.5 billion. Merchandise imports grew by 21% to $2.6 billion, with the industrial sector being the largest consumer at $1.3 billion.
Financial services dominated the invisibles segment, accounting for $1.5 billion, a 41% increase, while business services surged by nearly 250% to $225 million.
Despite the increase in Q4 2023, the overall trend shows a decline in FX utilisation since Q4 2022 due to liquidity challenges. The CBN expects higher FX utilisation in future quarters due to recent reforms aimed at improving market liquidity.
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