Nigeria’s Foreign Reserve Rebounds with $110m Increase in Six Days

Nigeria’s foreign exchange reserve increased by $110 million over the past six days following a concerning 10-week dip that saw the reserves fall by $1.8 billion

Data obtained from the Central Bank of Nigeria (CBN) on Sunday revealed that the foreign reserve stood at $32.80 billion as of June 6, 2024, up from $32.69 billion on May 31.

This steady increase was marked by successive daily gains with the reserve rising from $32.74 billion on June 3 to $32.77 billion on June 4, and then to $32.79 billion on June 5.

The media reported a $1.8 billion reserve decline between March 18 and May 29, 2024.

The steady increase in the reserves suggests that Nigeria is on a path to economic recovery, bolstering investor confidence and supporting potential economic growth.

Economic analysts have attributed the reserve’s rebound to several factors, including a rebound in the naira against the US dollar. In late March, the naira gained significant ground in both official and parallel markets.

This appreciation was partly driven by the Central Bank of Nigeria’s announcement that it had settled all valid foreign exchange backlogs.

The fulfillment of this $7 billion obligation was a key commitment by CBN Governor Mr. Olayemi Cardoso, aimed at stabilizing the forex market and restoring investor confidence.

Moreover, the increase in foreign reserves reflects broader economic strategies implemented by the Nigerian government and the CBN to enhance fiscal stability.

These strategies include measures to attract foreign investment, boost export earnings, and manage external debts effectively.

The positive trend in Nigeria’s foreign reserve comes at a crucial time as the country navigates global economic uncertainties and internal financial challenges.