The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced on Tuesday that the country’s foreign reserves have risen by 12.74% to $39.12 billion as of October 11, 2024. Cardoso made this statement during his appearance before the House of Representatives Committee on Banking Regulation.
He noted that Nigeria’s reserves stood at $34.70 billion at the end of June 2024, highlighting a significant increase over the past few months. The growth, according to Cardoso, has been largely driven by remittance flows, which now account for 9.4% of the country’s total external reserves.
“In Q2 2024, we maintained a current account surplus and saw remarkable improvements in our trade balance,” Cardoso stated, adding that the current reserves position can finance over 12 months of imports for goods and services or 15 months of goods alone.
He emphasized that this level is considerably higher than the international benchmark of three months, providing a strong buffer against external economic shocks.
Cardoso also touched on reforms in the foreign exchange market, including the unification of various exchange rate windows into a single framework. This new “willing buyer, willing seller” model aims to enhance foreign exchange liquidity and stability in the financial market. Additionally, the CBN introduced operational changes, including the removal of the quote cap for international money transfer operators (IMTOs), to boost transparency and reduce market distortions.
