Nigeria’s external reserves have reached $37.05 billion as of July 18, 2024, according to the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso. This increase represents a significant rise from $34.70 billion at the end of June 2024, marking a $2.35 billion boost in just 18 days.
Governor Cardoso announced this development during a press briefing at the conclusion of the 296th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday. He highlighted that the current reserve level provides approximately eleven months of import cover for goods and services.
The CBN governor’s communique noted, “As of July 18, 2024, external reserves stood at US$37.05 billion, compared with US$34.70 billion as of June 2024. This represents eleven (11) months of import cover for goods and services.”
Reserves at a 17-Month High
According to Nairametrics, the foreign exchange (FX) reserves have reached their highest level since January 26, 2023, when they stood at $37.07 billion. However, a check by Nairametrics revealed a discrepancy on the CBN website, which listed gross reserves at $35.93 billion as of July 18, 2024, and $36.01 billion as of July 19, 2024, figures slightly lower than those presented by Governor Cardoso.
Focus on Boosting External Reserves
The MPC has recently urged the CBN to concentrate on enhancing the external reserves. In response, the CBN plans to double the diaspora remittance inflow this year. Earlier reports indicated a 39% increase in inflows through International Money Transfer Operators (IMTOs) for the first quarter of 2024 compared to the same period in 2023. This increase amounted to $1.07 billion in Q1 2024, up from $770.23 million in Q1 2023. When compared to the last quarter of 2023, which saw total inflows of $965.82 million, there is an 11% increase.
Financial Support and Reforms
Several recent initiatives have bolstered Nigeria’s external reserves. Afrexim Bank announced the disbursement of $925 million as part of a $3.3 billion crude oil-backed loan agreement with the NNPC. This tranche brings the total disbursed amount to $3.175 billion, aimed at stabilizing the forex market amidst severe volatility.
Additionally, the World Bank recently approved $2.25 billion in loans to Nigeria to enhance economic stability and support vulnerable populations. From this, $751.88 million was disbursed under the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET), Development Policy Financing Program (DPF) project.
These efforts reflect a broader strategy to strengthen Nigeria’s economic framework and ensure a steady flow of foreign exchange into the country.
