Nigeria’s external reserve has risen to $36.89 billion as of July 16, 2024, following the banks’ policy interventions.
This information was disclosed by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, on Friday during a session with the Senate Committee on Banking, Insurance, and Other Financial Institutions in Abuja.
Cardoso highlighted that the CBN’s monetary policies and actions have fostered growth and stability within Nigeria’s economy.
He also noted that the Naira is experiencing successful price discovery against the dollar and other foreign currencies, as evidenced by the narrowing gap between the official and black market rates.
He stated, “The spread between official and BDC rates has narrowed significantly from N162.62 in January to N47.22 in June, indicating successful price discovery, increased market efficiency, and reduced arbitrage opportunities.”
Cardoso further explained, “The stock of external reserves increased to 36.89 billion dollars as of July 16, compared with 33.22 billion dollars as at end-Dec 2023, driven largely by receipts from crude oil-related taxes and third-party receipts. In the first quarter of 2024, we maintained a current account surplus and saw improvements in our trade balance.”
In contrast, reports indicated that Nigeria’s external reserve stood at $35.9 billion as of Thursday, July 18, 2024, according to CBN data.
This development follows CBN’s renewed efforts to defend the Naira by supplying FX to authorized dealers amidst a surge in demand.
