Nigeria’s foreign exchange reserves have increased by 5 percent to $33.58 billion over the past two months, according to the latest data from the Central Bank of Nigeria (CBN) released on June 19, 2024.
The current figure represents a $1.47 billion increase from the $32.11 billion recorded on April 19, 2024. This growth aligns with the Monetary Policy Committee’s (MPC) recent commitment to boosting the country’s external reserves.
During its 295th meeting, the MPC noted the marginal increase in external reserve balance between March and April 2024 and encouraged the CBN to maintain its focus on reserve accretion.
Contributing to this increase was a recent $925 million inflow from Afrieximbank, part of a $3.3 billion crude oil-backed prepayment facility organised by the Nigerian National Petroleum Company Limited.
However, despite the growth in foreign reserves, the Nigerian Naira continues to face challenges in the forex market. On Thursday, the currency depreciated for the second consecutive day, trading at N1485.36 against the US dollar.
This development highlights the complex nature of Nigeria’s economic landscape, where improvements in certain areas may not immediately translate to overall economic stability.
As the situation continues to evolve, economic analysts will be closely monitoring the impact of these reserve increases on Nigeria’s broader financial outlook and currency performance.
