Nigeria’s external reserves have surged to a remarkable 22-month high, now standing at $37.39 billion as of September 19, 2024, according to data released by the Central Bank of Nigeria (CBN). This marks the highest level of reserves since November 4, 2022, when they were recorded at $37.36 billion.
The increase in reserves is significant, reflecting a year-to-date rise of $4.37 billion from the $33.02 billion recorded at the beginning of the year on January 2, 2024. This upward trend indicates a recovery in Nigeria’s foreign currency position during the specified period, which is crucial for the country’s economic stability and international trade.
As of last Friday, the Naira was trading at N1544.02 and N1663 per dollar in the official and parallel foreign exchange markets, respectively. This disparity highlights ongoing challenges in the foreign exchange landscape.
Looking ahead, the Central Bank of Nigeria is set to convene for the 297th Monetary Policy Committee meeting on Monday and Tuesday. During this meeting, policymakers will deliberate on whether to continue the current trend of interest rate hikes or to take a pause, a decision that will be closely monitored by financial analysts and stakeholders in the economy.
The recent boost in external reserves is a positive development for Nigeria, suggesting potential for enhanced economic resilience and stability in the face of global economic fluctuations.