Nigeria’s foreign exchange (FX) reserves have shown a consistent rise, as indicated by recent data released by the Central Bank of Nigeria.
As of June 20, 2024, the country’s FX reserves reached $33.6 billion, marking a notable increase from $32.7 billion recorded on June 3, 2024.
This steady growth is a positive development for Nigeria’s economy, which has faced challenges such as currency fluctuations and reduced foreign investment in recent times.
The improvement in FX reserves can be attributed to several factors, including higher crude oil prices, enhanced export earnings, and efforts by the CBN to manage the nation’s currency.
The data reveals that Nigeria’s FX reserves have consistently grown over the past fortnight, with an average daily increase of $150 million. This marks a departure from previous months when reserves fluctuated due to various economic factors.
The rise is anticipated to benefit Nigeria’s economy significantly, providing a buffer to fulfil foreign exchange obligations, including servicing foreign debts and importing goods and services.
Moreover, the increased FX reserves are likely to bolster investor confidence in the Nigerian economy, addressing a significant challenge faced in recent years.