by Tunji Andrews
Provisional data indicated that foreign exchange inflow through the CBN in the second quarter of 2014 amounted to US$12.67 billion, representing an increase of 23.9% and 34.1% above the levels in the preceding quarter and the corresponding quarter of 2013, respectively.
The development relative to the preceding quarter was attributed to the 14.1% increase in receipts from crude oil exports. Outflow amounted to US$12.81 billion, showing a decline of 18.4% below the level in the first quarter of 2014, but indicated an increase of 2.1% above the level in the corresponding quarter of 2013.
The fall in outflow, relative to the preceding quarter, was attributed to the decline in rDAS utilization and external debt service payments. The development resulted in a net out flow of US$0.14 billion, compared with US$5.47 billion and $3.10 billion recorded in the preceding quarter and the corresponding quarter of 2013, repetitively. Provisional data on aggregate foreign exchange flows through the economy indicated that total inflow amounted to US$39.46 billion, representing an increase of 8.1% and 6.0% above the levels in the preceding quarter and the corresponding quarter of 2013, respectively.
The development was attributed to the increase in receipts from crude oil export and non-oil export receipts through autonomous sources. Oil sector receipts, which accounted for 28.4% of the total, stood at US$11.21 billion, compared with the US$9.82 billion and US$9.20 billion recorded in the first quarter of 2014 and the corresponding quarter of 2013, respectively.
Non-oil public sector inflow, at US$1.46 billion (3.7% of the total) rose by 264.2% and 504.6% above the levels in the preceding quarter and the corresponding quarter of 2013, respectively. Autonomous inflow, which accounted for 67.9% of the total, rose by 1.9% above the level in the first quarter of 2014. At US$13.06 billion, aggregate foreign exchange outflow from the economy, declined by 18.5% below the level in the preceding quarter, but indicated an increase of 3.3% above the level in the corresponding quarter of 2013.
The decline, relative to the preceding quarter, was accounted for, mainly, by lower demand at the retail Dutch auction segment (rDAS). Overall, a net inflow of US$26.39 billion was recorded in the second quarter of 2014, compared with US$20.48 billion and US$24.57 billion in the preceding quarter and the corresponding quarter of 2013, respectively.
Foreign exchange demand by the authorized dealers for the review quarter was estimated at US$11.17 billion, indicating a decline of 33.7% below the level in the preceding quarter, but showed an increase of 37.3% above the level in the corresponding quarter of 2013. The development, relative to the preceding quarter was due to increased capital importations and the supply of foreign exchange by major oil companies at the interbank market, which dampened demand at the official window.
The sum of US$10.79 was sold by the CBN during the review quarter, indicating a decline of 25% below the level in the preceding quarter, but an increase of 0.1% above the level in the corresponding quarter of 2013.
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