Nigeria’s External Reserves Surge to $36.89 Billion Amid Central Bank’s Policy Interventions
Abuja, Nigeria – The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced a significant increase in the country’s external reserve, reaching $36.89 billion as of July 16, 2024. This milestone comes amid the CBN’s efforts to stabilize the economy and promote growth through monetary policies and interventions.
Speaking at an engagement with the Senate Committee on Banking, Insurance, and Other Financial Institutions, Cardoso highlighted the CBN’s achievements in stimulating economic growth and stability in Nigeria. He emphasized that the country’s monetary policies have successfully narrowed the gap between the official and black market exchange rates, indicating a successful price discovery and reduced arbitrage opportunities.
According to Cardoso, the CBN’s external reserve has grown by 11% since the end of December 2023, driven primarily by receipts from crude oil-related taxes and third-party receipts. In the first quarter of 2024, Nigeria maintained a current account surplus and witnessed improvements in its trade balance.
The development comes as the CBN resumed its Naira defense efforts by supplying foreign exchange (FX) to authorized dealers, following a surge in demand. This move aims to ensure a stable exchange rate and maintain economic stability.
In related news, Media Talk Africa reports that Nigeria’s external reserve stood at $35.9 billion as of Thursday, July 18, 2024, according to CBN data.
Cardoso’s remarks have been seen as a positive development for Nigeria’s economy, which has been struggling with external headwinds and domestic challenges in recent years. The surge in external reserves is expected to bolster the country’s economic stability and create a more favorable business environment.
