Nigeria’s external reserves have surged to a 22-month high, reaching $37.31 billion as of September 18, 2024, marking a notable recovery in the country’s foreign currency reserves.
According to data from the Central Bank of Nigeria (CBN), this is the highest level recorded since November 4, 2022, when reserves stood at $37.36 billion.
The rise in external reserves highlights increased foreign inflows into the Nigerian economy, signifying improved foreign exchange stability. However, despite this boost, the naira continues to struggle, with Bloomberg recently ranking it as one of the 10 worst-performing currencies globally as of September 20.
Nigeria’s external reserves represent the country’s foreign currency stockpile, which is essential for meeting international financial obligations and stabilizing the naira. These reserves, however, have yet to significantly strengthen the local currency against external pressures.
On a year-to-date basis, Nigeria’s reserves have surged by 12.99%, or $4.29 billion, from the $33.02 billion recorded at the start of 2024. Compared to the same period in 2023, the reserves increased by 12%, adding $4.03 billion to the $33.28 billion recorded on September 18, 2023.
