Daud Olatunji
Nigeria’s external reserves have achieved a significant milestone, surpassing $35 billion for the first time since President Bola Tinubu assumed office.
PLATFORM TIMES reports that as of July 8, 2024, the reserves stood at $35.05 billion, according to data from the Central Bank of Nigeria (CBN), analyzed by Nairametrics.
PLATFORM TIMES gathered that the recent increase marks the highest level of Nigeria’s foreign reserves since May 30, 2023, when the reserves were at $35.09 billion.
This period was notable as it occurred just 14 days before the introduction of the foreign exchange (FX) unification policy in June 2023, a significant economic reform aimed at stabilising the nation’s currency market.
The FX unification policy, which sought to eliminate the multiple exchange rates that had previously existed, was a key measure to attract foreign investment and improve transparency in Nigeria’s FX market.
Since its implementation, the policy has been instrumental in bolstering investor confidence and fostering a more predictable economic environment.
The steady growth in the FX reserves is seen as a positive indicator of Nigeria’s economic resilience and the effectiveness of the current administration’s fiscal and monetary policies.
Analysts attribute this upward trend to a combination of factors, including improved oil revenues, increased foreign investment inflows, and prudent economic management by the CBN.
Oil revenues, which constitute a significant portion of Nigeria’s foreign exchange earnings, have been on the rise due to favorable global oil prices and enhanced production levels.
Additionally, the government’s efforts to curb oil theft and increase operational efficiencies in the oil sector have contributed to the steady inflow of FX reserves.
It was further gathered that, the CBN’s strategic interventions in the FX market, such as maintaining a balanced supply of foreign currency and implementing measures to curb speculative activities, have played a crucial role in stabilising the naira and boosting the reserves.
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