Nigeria’s external reserves rose to $35.05 billion on July 8, marking the highest level since May 30, 2023.
According to the Central Bank of Nigeria (CBN), foreign reserves increased by $280 million from $34.77 billion on July 5.
Index noted consistent growth in the country’s foreign reserves in July, hitting the highest levels seen this year.
From July 1 to 4, the reserves grew from $34.34 billion to $34.43 billion, then to $34.55 billion, and $34.66 billion, respectively.
This marks the first time since May 30, 2023, that Nigeria’s external reserves have reached such levels ($35.09 billion), a day after the current administration took office.
Since President Bola Tinubu took office, the government, through the CBN, has implemented various policies to enhance the foreign exchange (FX) market and strengthen the naira.
One recent measure is the CBN’s directive for banks to transfer all excess foreign currency notes to its Lagos or Abuja branches.
“To deepen the foreign exchange market, boost liquidity, and align exchange rates between the parallel and official markets, the CBN has approved that DMBs (Deposit Money Banks) may deposit their excess foreign currency notes with Lagos and Abuja branches of the Bank,” stated the CBN.
“This approval addresses the growing demand by DMBs to deposit their forex cash with the CBN for onward credit to their offshore accounts with correspondent banks.”
Olayemi Cardoso, CBN governor, mentioned on June 25 that the apex bank is “relatively pleased” with the progress in stabilizing the naira.
Despite the positive trend in foreign reserves, the naira weakened at the close of Wednesday, trading at N1,561 against the dollar in the official window.
