The Central Bank of Nigeria (CBN) has announced that the nation’s external reserves have increased to $40.2 billion as of October 18, 2024. This update was shared by Mr. Muhammed Andullahi, Deputy Governor for Economic Policy, during a briefing with foreign investors at the ongoing annual meetings of the IMF and World Bank in Washington, DC.
Key Highlights:
- The current level of reserves can support 14.5 months of goods and services imports or 18 months for goods imports alone.
- As of August 2024, foreign exchange inflow into Nigeria stood at $57 billion.
- Capital Importation has nearly doubled to $6.9 billion in August 2024, up from $3.9 billion in the 2023 Financial Year.
- Monthly remittances from the Nigerian diaspora have reached $650 million, contributing to a record total of $3.5 billion, surpassing the $3.2 billion reported for the entire year of 2023. The CBN aims to achieve $1 billion in monthly remittances.
- CBN’s interventions in the foreign exchange market have decreased to as low as 5 percent of market turnover, with plans to ensure the market is not overly reliant on these interventions.
Future Developments:
Starting in December, the FX market will implement a matching system, enhancing transparency in trading by allowing participants to see detailed transactions.
Mr. Olayemi Cardoso, the CBN Governor, assured investors that the current FX administration is designed to facilitate easy access for Nigerians and investors wishing to bring foreign exchange into the country. He emphasized the increasing confidence of Nigerians in their currency, noting the expected rise in interest for local financial instruments due to higher interest rates.