According to data from the Central Bank of Nigeria (CBN), Nigeria’s external reserves have reached $35.05 billion as of July 8, 2024. This marks the first time the reserves have surpassed the $35 billion threshold under President Bola Tinubu’s administration.
CBN’s data on external reserves show that on May 30, 2023, the reserves were at $35.09 billion, about 14 days before the implementation of the foreign exchange (FX) unification policy in June 2023. Following the announcement of this policy, the reserves fell to $34.66 billion.
Between July and December 2023, the reserves fluctuated within the $33 billion range. This year, the reserves hit a low of $32.11 billion on April 19, 2024, according to the data.
Addressing the reasons for the drop, the central bank governor attributed the decreasing reserves primarily to debt repayments and other standard financial obligations, rather than efforts to defend the naira.
Analysis of CBN data revealed that the exchange rate surged in the last few weeks of June, surpassing $34 billion for the first time since April. The reserves have continued to grow in July, reaching their highest level in the past year.
Since hitting the lowest point of $32.11 billion in April under Tinubu, the external reserves have increased by $2.94 billion in less than three months, according to CBN data.
The CBN has stated its intention to double the inflow of diaspora remittances this year, aiming to ensure a steady flow of foreign exchange into the country.