Nigeria’s external reserves experienced a notable boost of $424.68 million between August 30 and September 10, signaling a more favorable financial outlook for the nation.
According to The PUNCH, this information, sourced from a recent report by the Central Bank of Nigeria and analyzed on Thursday, underscored the importance of these reserves, which play a critical role in maintaining naira stability, financing imports, and meeting external obligations.
The reserves, which initially stood at $36.305 billion on August 30, saw a 1.17 percent rise over the 11-day period, reaching $36.730 billion by September 10. These foreign-denominated assets, held by the CBN to back national liabilities and guide monetary policy, are key to Nigeria’s financial stability.
However, a temporary dip occurred on September 2, when the reserves fell to $36.244 billion, marking a minor $61 million decline.
The reserves then rebounded on September 3, climbing to $36.274 billion—a modest gain of $30 million.
By September 4, the reserves had returned to their August 30 level, standing at $36.304 billion, demonstrating resilience in the face of fluctuations.
The upward trend continued on September 5, when the reserves rose by an additional $33 million, reaching $36.337 billion. A more significant increase followed on September 6, as the reserves jumped by $55 million, hitting $36.392 billion.
The most substantial surge occurred between September 6 and September 9, when Nigeria’s reserves grew by an impressive $250 million, reaching $36.642 billion.
This growth trajectory persisted on September 10, with reserves rising by another $88 million to settle at $36.730 billion.
The Central Bank attributed the growth in reserves to multiple factors, including the evolving nature of Nigeria’s foreign exchange market, changes in international trade patterns, economic institutional reforms, and structural shifts in the nation’s production sector.
Despite this upward trend, the *PUNCH* had reported a recent dip in Nigeria’s foreign exchange reserves, revealing that they had fallen by $342.97 million to $36.53 billion within nine days.
The drop was linked to the CBN’s sale of $876.26 million via the Retail Dutch Auction System to meet importers’ demands and other foreign exchange users.
Additionally, Nigeria made a notable stride in its financial sector by securing $900 million in subscriptions for its first-ever foreign-currency domestic bond.
This achievement highlighted the country’s expanding footprint in international financial markets and its ongoing efforts to diversify funding sources while strengthening its foreign reserves.
