The Governor of the Central Bank of Nigeria, Olayemi Cardoso, revealed that the country’s external reserves have increased to $36.89 billion as of July 16, 2024.
This development is a result of the CBN’s policy interventions, which have had a positive impact on the economy.
According to Cardoso, “The spread between official and BDC rates has narrowed significantly from N162.62 in January to N47.22 in June, indicating successful price discovery, increased market efficiency, and reduced arbitrage opportunities.”
He added that the stock of external reserves increased from $33.22 billion at the end of December 2023 to $36.89 billion, driven largely by receipts from crude oil-related taxes and third-party receipts.
The CBN’s monetary policies have also led to improvements in the trade balance and current account surplus in the first quarter of 2024.
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Cardoso noted that the Naira is on a successful price discovery against the dollar and other foreign exchange, as the gap between the official and black market rates continues to shrink.
This development comes as the CBN resumed its defense of the Naira through the supply of foreign exchange to authorized dealers, amid a demand spike. As of July 18, 2024, Nigeria’s external reserve stood at $35.9 billion, according to CBN’s data.
