Nigeria’s External Reserves Rise to $36.89bn Due to CBN Policies – Cardoso

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced that the country’s external reserves increased to $36.89 billion as of July 16, 2024, following the bank’s policy interventions.

Cardoso shared this information on Friday in Abuja during a session with the Senate Committee on Banking, Insurance, and Other Financial Institutions. He highlighted that the CBN’s monetary policies and actions have fostered growth and stability in Nigeria’s economy.

Cardoso also mentioned that the Naira is experiencing successful price discovery against the dollar and other foreign currencies, as the gap between the official and black market rates narrows.

He said, “The spread between official and BDC rates has significantly narrowed 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 at the end of 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.”

NIGERIA NEWS 247 reports that Nigeria’s external reserves stood at $35.9 billion as of Thursday, July 18, 2024, according to CBN data. This development comes as CBN resumed defending the Naira through the supply of foreign exchange to authorized dealers amid a surge in demand.