Nigeria’s foreign exchange reserves have risen to a record high of $34.7 billion, data from the Central Bank of Nigeria (CBN) reveals.
This is an increase of $110 million from the previous day’s figure of $34.5 billion and a total gain of $316 million since July 1.
Experts attribute this growth to various factors, including the recent surge in oil prices, improved diaspora remittances, and the CBN’s efforts to stabilize the currency.
This development is a positive sign for Nigeria’s economy.
Fitch Ratings had recently recognized Nigeria’s economic progress, revising its outlook to positive, citing significant reforms that have restored macroeconomic stability and enhanced policy coherence and credibility.
The CBN’s measures, such as the introduction of the Investors’ and Exporters’ window, have attracted foreign investment and boosted reserves, leading to a significant rise in foreign portfolio investment inflows.
While short-term challenges persist, including high inflation and FX market volatility, Fitch expects further monetary policy tightening and strengthening of monetary policy transmission.
