Letter of credit for importation of goods dropped by $344m in Q1 2024 —CBN

Letter of credit issued by banks for importation of goods fell to $204.47 million in the first quarter of 2024.

The banks reported $549.22 million for the same in first quarter of 2023.

This year’s figure represents a decrease of $344.7 million or 62.7 percent in the value of letter of credit over that of last year.

The development, according to an international payments data from the Central Bank of Nigeria (CBN), showed a significant decrease in Nigeria’s international trade and financial transactions.

The data was obtained by Ripples Nigeria on Sunday.

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A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amounts.

In the breakdown, the data showed letters of credit payment stood at $58.33 million in January, compared to $107.78 million in the same month last year.

In February, the value was $102.6 million relative to $171.95 million in the corresponding period of the previous year.

According to CBN, the figure fell to $43.54 million in March, compared to the $269.49 million reported in March 2023.

By: Babajide Okeowo

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