CBN reports Nigeria’s external reserves rises to $40.2 Billion

The Central Bank of Nigeria (CBN) has announced that Nigeria’s external reserves reached $40.2 billion as of October 18, 2024.

Deputy Governor of Economic Policy, Mr. Muhammed Abdullahi, shared this update during a briefing with foreign investors at the annual IMF and World Bank meetings in Washington, D.C.

Abdullahi highlighted that the reserve level is sufficient to cover 14.5 months of imports for goods and services or up to 18 months for goods alone.

He also reported that foreign exchange inflows into Nigeria reached $57 billion by August 2024, while capital importation nearly doubled, standing at $6.9 billion, up from $3.9 billion in 2023.

The CBN’s efforts to boost diaspora remittances are paying off, with current monthly remittances now at $650 million.

Total diaspora inflows have hit a record $3.5 billion this year, surpassing the $3.2 billion recorded for all of 2023.

Abdullahi noted that the CBN is on track to reach its goal of $1 billion in monthly remittances.

Abdullahi further explained that CBN’s intervention in the foreign exchange market now represents only about 5% of market turnover, as the bank aims to limit dependency on its support. Starting in December, the FX market will implement a matching system to ensure transparent trading, allowing participants to view all transactions in real-time.

CBN Governor Mr. Olayemi Cardoso reassured investors that the current foreign exchange framework is structured to facilitate easy access for Nigerians and investors. He highlighted that the new FX adjustments aim to boost local production by making it more affordable than imports, thereby fostering economic growth.

Regarding exchange rate harmonization, Cardoso pointed out that Nigerians sending remittances no longer need to rely on alternative methods. This change has driven a significant increase in diaspora inflows, contributing positively to Nigeria’s FX reserves.