In a significant development, Nigeria’s external reserve has surged to a record high of $36.89 billion as of July 16, 2024, according to the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso.
Thank you for reading this post, don't forget to subscribe!This remarkable feat is attributed to the bank’s prudent monetary policies and timely interventions, which have stimulated growth and stability in the Nigerian economy.
During an engagement with the Senate Committee on Banking, Insurance, and Other Financial Institutions, Cardoso highlighted the impressive progress made in the country’s foreign exchange market.
According to report from DailyPost, He noted that the Naira has successfully navigated a price discovery process, with the gap between the official and black market rates shrinking significantly.
The spread between official and BDC rates has narrowed from N162.62 in January to N47.22 in June, indicating increased market efficiency and reduced arbitrage opportunities.
The CBN’s efforts to stabilize the Naira have also led to a surge in foreign exchange inflows, driven primarily by receipts from crude oil-related taxes and third-party receipts. The bank’s current account surplus has improved, with trade balances showing a positive trend in the first quarter of 2024.
Notably, Nigeria’s external reserve has increased by $3.67 billion since the end of December 2023, reflecting the CBN’s commitment to maintaining a strong foreign exchange buffer. The latest data from the CBN shows that the country’s external reserve stood at $35.9 billion as of July 18, 2024.
The CBN’s interventions have also helped to mitigate demand pressures on the foreign exchange market, with the bank resuming its Naira defense through the supply of FX to authorized dealers. This proactive approach has helped to maintain stability in the market and protect the value of the Naira.
