Nigeria’s FX reserve rises to $32.8bn after 10-week slump
After a 10-week dip of $1.8bn, Nigeria’s foreign exchange reserve has shown a steady increase over the past six days, indicating a recovery process for the economy’s external reserve.
According to data obtained by PUNCH Online from the Central Bank of Nigeria’s website on Sunday, the foreign reserve stood at $32.80bn on June 6, 2024, indicating an increase of $110m from $32.69bn on May 31.
This upward trend has been consistent over the past six days, with the reserve increasing from $32.74bn on June 3 to $32.77bn on June 4 then $32.79bn on June 5 before the current value.
The steady increase in the foreign reserve is a welcome development for the Nigerian economy, which has faced challenges in recent times.
The PUNCH reported that the reserve had dipped by $1.8bn between March 18 and May 29, 2024, sparking concerns about the country’s ability to meet its financial obligations.
However, the recent increase suggests that the economy is on the path to recovery.
The foreign reserve is a critical component of a country’s economic health, as it serves as a buffer against economic shocks and provides the means to settle international obligations.
With this steady increase, Nigeria’s foreign reserve is expected to continue to grow, bolstering investor confidence and supporting economic growth.
PUNCH Online reported that the naira rebounded against the United States dollar in late March at the official and parallel markets, with the local currency recording a significant gain against the greenback at the black market.
This came as the Central Bank of Nigeria announced the final settlements of all valid foreign exchange backlogs, fulfilling a key pledge of the apex bank governor, Mr. Olayemi Cardoso, to process an inherited backlog of $7bn in claims.
