Nigeria's Foreign Reserves Rise to $36.89 Billion, Says CBN Governor.

According to Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), the country's foreign reserves climbed to $36.89 billion on July 16, 2024, as a result of the bank's policy actions.

During a meeting with the Senate Committee on Banking, Insurance, and Other Financial Institutions on Friday in Abuja, Cardoso made this revelation. He mentioned that Nigeria's economy has experienced development and stability due to the CBN's monetary policies and operations.

Cardoso continued, "As the gap between the official and black market shrinks, the Naira is on a successful price discovery against the dollar and other FX." 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.

“The stock of external reserves increased to $36.89 billion as of July 16, compared with $33.22 billion as of end-December 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.”

According to CBN data, Nigeria's external reserve was $35.9 billion on Thursday, July 18, 2024. This comes as the CBN, in response to a surge in demand, has resumed the Naira defence by providing foreign exchange to approved dealers.