Market News

Nigeria’s gross foreign reserves recorded further inflows, adding $28.7 million within 24 hours, closing at $41.10 billion.

The reserves, which closed at $41.077 billion on August 21, grew to $41.10 billion on August 22, representing estimated $28.7 million inflows in 24 hours.

The current upbeat shows the reserves have continued to rise, and is expected to also support naira stability.

The CBN Governor, Olayemi Cardoso said the reserves, which are currently at four-year high, could provide up to 10 months cover for imports.

The naira also closed at N1,542 to dollar at the parallel market, stronger than N1,550 to dollar it closed last week. At the official market, the naira exchanged at N1,535 to dollar, stronger than N1,540 to dollar at the start of last week.

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According to data from the Central Bank of Nigeria (CBN) reserves movement chart, the gross foreign reserves stood at $41.07 billion on August 21.

 The reserves earlier hit $40.72 billion on August 13, driven largely by rising forex inflows and marginal increase in crude oil output.

According to the apex bank, the gross reserves on the average stood at $39.3 billion on August 1, and reached $39.5 billion on August 6, and hit $40.2 billion on August 8.

The sustained reserves accretion, decline in inflation rate, commodities prices dip as well as long-term naira stability are all positive fallout of the ongoing economic reforms instituted by the federal government.

  Aside the reserves, the naira has also seen sustained stability while the inflation rate has continued to decline, closing July at 21.88 per cent.

Part of the reserves accretion was triggered by the FX reforms, instituted by the Olayemi Cardoso-led CBN, new policies instituted by the Federal Government to boost local production, reduce forex demand pressure, and lessen domestic prices have been instrumental to macroeconomic stability.

The expectations are that the apex bank sustains the forex reforms while the fiscal authority strengthens efforts at enhancing FX earnings, especially from gas, oil and non-oil exports.

President, Association of Bureaux De Change Operators of Nigeria, Dr. Aminu Gwadabe, said the apex bank under Cardoso has been cultivating multiple FX sources to increase dollar inflows, boost dollar access to manufacturers and retail end users.

 “From moves to improve diaspora remittances through new product development, the granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller FX model, and enabling timely access to naira liquidity for IMTOs, the apex bank has simplified dollar-inflow channels for authorized dealers and other players in the value chain,” he said.