Nigeria’s foreign exchange (FX) reserves have surged to their highest level since March 28, 2024, coinciding with the longest period of stable exchange rate seen in over a year. This achievement comes as the country recorded a string of financial commitments from the World Bank through new multilateral loans.
According to the latest data published by the Central Bank of Nigeria (CBN), the reserves now stand at $33.58 billion as of June 19, 2024, representing a notable recovery since the end of March 2024 when it was as high as $33.83 billion before a period of decline set in.
The rise in FX reserves comes after three months of noticeable fluctuations when it plunged to a low of $32.11 billion on April 19, 2024, sparking concerns about the nation’s financial stability. However, since then, a gradual and consistent upward trajectory has been observed, coinciding with a period of exchange rate stability. The official exchange rate has averaged N1,481/$1 this month and has depreciated or appreciated within a band of plus or minus 0.06%.
According to data from the Central Bank of Nigeria, forex reserves have risen by 5% or $1.47 billion in the last two months, with the FX reserves rising from $32.11 billion on April 19, 2024, to $33.58 billion by June 19, 2024. This growth represents a substantial boost for the country’s external reserves, as the apex bank continues to implement policies that attract forex liquidity.
“This achievement is a testament to the effectiveness of the policies implemented by the Central Bank of Nigeria over the past year, as well as the confidence of foreign investors in the Nigerian economy,” said the CBN Governor. “We remain committed to maintaining a stable exchange rate and building a robust external reserve position to support the country’s economic growth and development.”
However, critics will point to a much-improved liquidity position considering the plethora of policies implemented by the central bank over the last year as well as several promises of potential forex inflow from foreign portfolio investors.
