Nigeria’s Foreign Reserves Rose To $39bn In October, Says Cardoso

Posted by African Examiner Business News, Latest Headlines Wednesday, October 16th, 2024

(AFRICAN EXAMINER) – The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, on Tuesday said the country’s foreign reserves rose by 12.74 per cent to $39.12 billion as of October 11.

Cardoso stated this while appearing before the House of Representatives Committee on Banking Regulation.

The apex bank boss noted that the nation’s foreign reserves stood at $34.70 billion at the end of June.

“The reserves rose by 12.74% to $39.12 billion as of October 11, 2024, from $34.70 billion at the end of June 2024,” he said.

Cardoso maintained that the reserves have “grown significantly” with remittance flows which currently represent 9.4 per cent of total external reserves.

He added, “In Q2 2024, we maintained a current account surplus and saw remarkable improvements in our trade balance.

“The current external reserves position can finance over 12 months of import of goods and services or 15 months of goods only.

“This is substantially higher than the prescribed international benchmark of 30 months, reflecting a robust buffer against external shocks.

“Regarding the foreign exchange market, the bank implemented various reforms including a unification strategy, which streamlined various exchange rate windows into a single model, adopting the willing buyer, willing Seller’ approach to enhance FX liquidity and financial market stability.

“This move was aimed at fostering transparency, reducing market distortions, and enhancing the efficiency of foreign exchange allocations.

“This consolidation involved the implementation of new operational guidelines which included removing the international money transfer operators (IMTOs) quote cap.”