By Chinwendu Obienyi
Amidst economic uncertainties, Nigeria’s foreign exchange (FX) reserves reached a 3-week high, gaining $262 million, Daily Sun investigations can reveal.
The figure offers a glimmer of hope amidst concerns about economic stability after dwindling oil prices and debt service costs have contributed to the fluctuation in reserves.
Latest figures from the Central Bank of Nigeria (CBN) revealed a cautious upward adjustment, with reserves rising up to $32.368 million as of May, 7, 2024, from a one-month dip of $32.107 billion.
The nation’s reserves had been experiencing a steady decline from $34.45 billion on March 18th with the trend continuing steadily with the reserves falling to $34.389 billion, and further to $34.264 billion by March 21st.
The trend persisted through the end of March, with the reserves standing at $33.827 billion on the 28th. The descent carried on into April, reaching $33.570 billion by the 2nd, and then $32.612 billion by the 12th, marking a significant drop.
Mid-April figures showed a continuation of this pattern, with the reserves dipping to $32.291 billion on the 15th, $32.204 billion on the 16th, and then marginally to $32.121 billion on the 17th.
The reserves slightly declined to $32.110 billion on the 18th and hit the lowest mark of the observed period at $32.107 billion on the 19th. However, a subtle turnaround was seen with a slight uptick. Between April 19, 2024, and May 7, 2024, Nigeria’s foreign exchange (FX) reserves experienced a steady and consistent increase, rising from $32.107 billion to $32.369 billion.
The progression of this growth can be observed through the daily figures: on April 19, the reserves stood at $32.107 billion; by April 22, they had risen to $32.109 billion, and further to $32.113 billion on April 23.
By April 24, the reserves increased to $32.118 billion, and on April 25, they reached $32.132 billion.
This upward trajectory continued as the reserves climbed to $32.152 billion on April 26 and further to $32.233 billion by April 29. On April 30, the reserves stood at $32.255 billion, and by May 2, they had grown to $32.285 billion. The rise persisted on May 3, reaching $32.301 billion, and continued to $32.347 billion by May 6, finally culminating at $32.369 billion on May 7.
Overall, this period saw an increase of $262 billion in Nigeria’s FX reserves, showcasing a positive trend reflective of improved economic conditions and effective foreign exchange management.
According to analysts at Cordros Research, this incremental growth, though modest, is significant for Nigeria’s economic narrative, particularly amidst concerns regarding the stability of the Naira and meeting international trade and debt obligations.
“Overall, while the increase in reserves offers a positive outlook, continued attention to economic policies and strategies for managing reserves will be crucial for sustaining this positive trajectory and enhancing Nigeria’s economic resilience”, they said.