See how Nigeria's FX reserves increased to 33-month high

• The governor of the Central Bank of Nigeria (CBN) said that the Nigerian foreign reserves have hit a 33-month high of $40 billion
• The CBN governor said that the reforms embarked on by the bank were responsible for the substantial rise in the reserves
• Punch reports that Cardoso said that there are indications that inflation is also on a downward trend due to the reforms

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that Nigeria’s FX reserves have reached more than $40 billion, the highest in 33 months.

During a symposium in Abuja, the CBN boss disclosed that the apex bank has achieved significant milestones under his leadership.

The governor of the Central Bank of Nigeria (Olayemi Cardoso, said Nigeria's FX reserves are at a 33-month high. Credit: CBN
Source: Getty Images

Inflation on a downward trend

He disclosed that inflationary trends are now pointing downwards, showing the effectiveness of the bank’s interventions.

He said the reforms had produced positive results, including improvements in the foreign exchange market and the stabilisation of foreign reserves, which has now exceeded the $40 billion ceiling.

He said the achievements were due to solid policy measures, including recalibrating the Monetary Policy Rate (MPR) and raising the Cash Reserve Ratio (CRR) for commercial banks to 50%.

Cardoso said the measures aimed at curbing inflation and economic stability, highlighting improvements in the FX market and cited the elimination of multiple exchange rate windows.

The naira reverses gains

He disclosed that the reform had addressed the FX backlog settlements and curbed revenue losses estimated at N6.2 trillion in 2022.

The bank’s drive comes as the naira tumbled in the FX market on Friday, November 8, 2024, to N1,678.87 per dollar as against the N1,639 it exchanged the previous day.

The Nigerian naira dropped in value against the US dollar at the official (Nigerian Autonomous Foreign Exchange Market). 

Data obtained from FMDQ securities, where naira is officially traded, showed that the Nigerian currency closed at N1,678.87 per dollar on Friday, November 8, 2024. 

The naira's fall occurred despite an improvement in the forex supply to the spot market during the session. 

CBN gives New Orders on domiciliary account openings

Legit.ng earlier reported that the Central Bank of Nigeria (CBN) has asked commercial, merchant and non-interest banks (CMNIBs) to open domiciliary accounts for participants in its new guidelines on foreign currency disclosure, deposit, repatriation and investment scheme, 2024.

The new guidelines were adjusted on October 25, 2024, and issued by Wale Edun, the Minister of Finance.

According to the CBN, the guideline clarifies regulatory expectations from the financial institutions on their participation in the Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme, 2024.

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Source: Legit.ng