Nigeria’s external reserves recorded an increase of $424.68 million between 30 August and 10 September, highlighting an improved financial outlook for the country.
Data sourced from a report by the Central Bank of Nigeria (CBN) and analysed on Thursday showed the rise in the country’s foreign exchange reserves.
The reserves, crucial for stabilising the naira, financing imports, and managing external obligations, rose from $36.305 billion on 30 August to $36.730 billion by 10 September, representing a 1.17 per cent increase over the 11 days.
External reserves are foreign-denominated assets held by a central bank to back liabilities and influence monetary policy.
A slight dip to $36.244 billion was recorded on 2 September, representing a minor decline of $61 million. This was followed by a recovery, with the reserves rising to $36.274 billion on 3 September, reflecting a gain of $30 million.
A further analysis of the report indicated that on 4 September, the reserves had returned to their August 30 level, reaching $36.304 billion.
The positive trend continued on 5 September, as the reserves climbed to $36.337 billion, representing an increase of $33 million. A more substantial gain occurred on 6 September, with reserves growing by $55 million to $36.392 billion.
The most significant jump in the reserves was seen between 6 and 9 September, when the reserves surged by $250 million to reach $36.642 billion. This upward movement persisted on 10 September, with reserves further increasing by $88 million to $36.730 billion.
The apex bank attributed the growth to the evolution of the foreign exchange market in Nigeria, changing patterns of international trade, institutional changes in the economy, and structural shifts in production.
The PUNCH reported that Nigeria’s foreign exchange reserves dipped by $342.97 million to $36.53 billion in nine days, according to data from the Central Bank of Nigeria.
The decline in the country’s foreign exchange reserves comes amid the recent sale of $876.26 million to meet demands from importers and other users through the Retail Dutch Auction System.
Additionally, Nigeria’s first-ever foreign-currency domestic bond has secured $900 million in subscriptions.
