Nigeria’s naira appreciated by 0.6 percent against the United States dollar on Wednesday after the Central Bank of Nigeria confirmed an increase in net foreign exchange reserves.
The currency closed at 1,530 per dollar, its strongest level in almost one month and the biggest daily gain since March 18.
The Central Bank disclosed that net foreign reserves rose to $23 billion by December 2024, the highest in more than three years.
The increase was attributed to the reduction of outstanding liabilities, including foreign exchange swaps and forward contracts.
The CBN stated that the adjustment is part of ongoing efforts to strengthen reserve buffers and improve market confidence. Gross external reserves stood at $38.33 billion as of March 27, according to data monitored by the bank.
The report marks the first publication of net reserves since 2023 when questions were raised about the actual reserve position following disclosed transactions with JPMorgan Chase and Goldman Sachs involving foreign exchange collateral.
The CBN said it expects continued reserve growth supported by improved crude oil production and stable export receipts.
Since June 2023 the naira has depreciated by about 70 percent due to the implementation of foreign exchange reforms aimed at attracting capital inflows and unifying Nigeria’s exchange rate system.
The Central Bank said it will maintain its focus on stabilizing the foreign exchange market while continuing to rebuild reserves.
