Nigeria's FX reserves have surged to $33.58 billion, the highest since March 2024, reflecting significant financial stability. Boosted by World Bank loans and Afrexim Bank disbursements, the reserves' growth marks a recovery amid exchange rate stability and improved forex market liquidity.
Nigeria's foreign exchange (FX) reserves have reached their highest level since March 28, 2024, signaling a significant financial milestone and coinciding with the longest period of exchange rate stability seen in over a year. According to the Central Bank of Nigeria (CBN), the reserves now stand at $33.58 billion as of June 19, 2024.
This surge in FX reserves follows a period of fluctuations, with a notable low of $32.11 billion on April 19, 2024, which raised concerns about Nigeria’s financial stability. The CBN has since implemented policies to attract forex liquidity, resulting in a 5% increase in reserves over the past two months. The reserves rose from $32.11 billion in April to $33.58 billion in June, marking a substantial boost for the country’s external reserves.
This improvement comes as Nigeria secured new financial commitments from the World Bank, which approved $2.25 billion in loans to boost economic stability and support vulnerable populations. Additionally, Afrexim Bank disbursed $925 million as part of a $3.3 billion crude oil-backed loan agreement with the Nigerian National Petroleum Corporation (NNPC), bringing the total payment to $3.175 billion.
The CBN has focused on maintaining a stable exchange rate, which has averaged N1,481/$1 this month, fluctuating within a narrow band. Improved liquidity in the forex market has also been observed, with June’s average daily turnover reaching $199 million, up from $168 million in May.
The Monetary Policy Committee (MPC) has urged the CBN to continue its efforts to boost external reserves. The committee highlighted the importance of sustaining the reserve accretion momentum to ensure financial stability.
These developments reflect a concerted effort by Nigeria’s financial authorities to stabilize the economy and build resilience against external pressures.
Source: Nairametrics
