Data from the Central Bank of
The CBN in the latest edition of its **External Sector Development Report** for fourth quarter 2013, said inflows through official sources (CBN) dropped by 20.2 per cent from
According to the report produced by the apex bank's
The CBN also put foreign direct investment and portfolio inflows for the period at
Direct investment and portfolio investment inflows rose by 16.1 and 26.6 per cent from
Within the period, the report said portfolio investment inflow contributed the lion's share, accounting for 79.7 per cent of total, while direct investment inflows was 20.3 per cent.
"The higher inflow of foreign capital in the 2013 fourth quarter was a welcome development, which should be sustained through macro-economic stability and enhanced investment environment including good corporate governance," the report added
The stock of
"The observed depletion in external reserves was due largely to the sales of foreign exchange to authorised dealers, payments to public sector and debt service payments."
Also, the CBN said the bulk of
Sectoral utilisation of foreign exchange during the review period stood at
Analysis of foreign exchange utilized by sectors in the review period revealed that
The importation of industrial goods gulped 32.5 per cent of total, oil constituted 27.2 per cent; while food and manufactured products utilized 15.9 and 15.6 per cent of the total respectively.
"Further analysis revealed that
The CBN noted that in the fourth quarter of 2013,
"In order to reduce vulnerability in the sector, policy redress should be directed towards sustained macroeconomic stability, reduced infrastructural deficit by up-scaling the power sector output to increase domestic production and curtail the relatively high level of importation. The renewed pressure in the for- eign exchange market with the premium exceeding the benchmark level remained worrisome, thus, market dynamics should be adequately situated. In addition, securing of new loans must be on self-sustaining projects."
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