After declining for several weeks, Nigeria’s foreign exchange reserves have slightly increased during the past 19 days, by around $262 million.
According to the Central Bank of Nigeria’s (CBN) most recent statistics, reserves increased gradually and was at $32.369 billion as of May 7, 2024, up from a one-month low of $32.107 billion.
From $34.45 billion on March 18th, the reserves steadily decreased, mostly as a result of the interaction between declining oil prices, debt servicing expenses, and other CBN responsibilities.
The reserve is currently at a 26-day high when compared to the April 12, 2024 figure of $32.612 billion.
Read Also: CBN Gives IOCs Approval To Repatriate 50% Of FX Proceeds
Nigeria’s FX reserves experienced a notable decline for a little over a month, beginning at $34.450 billion on March 18th.
This downward trend continued steadily with the reserves falling to $34.389 billion by the 19th of March, and further to $34.264 billion by the 21st.
The trend persisted through the end of March, with the reserves standing at $33.827 billion on the 28th.
The descent carried on into April, reaching $33.570 billion by the 2nd, and then $32.612 billion by the 12th, marking a significant drop.
Mid-April figures showed a continuation of this pattern, with the reserves dipping to $32.291 billion on the 15th, $32.204 billion on the 16th, and then marginally to $32.121 billion on the 17th.
Read Also: Amid Outcry, Customs Hikes Import Duties FX Rate To N1,441/$1, Higher Than Official Rate
The reserves slightly declined to $32.110 billion on the 18th and hit the lowest mark of the observed period at $32.107 billion on the 19th.
However, a subtle turnaround was seen with a slight uptick. Between April 19, 2024, and May 7, 2024, Nigeria’s foreign exchange (FX) reserves experienced a steady and consistent increase, rising from $32.107 billion to $32.369 billion.
The progression of this growth can be observed through the daily figures: on April 19, the reserves stood at $32.107 billion; by April 22, they had risen to $32.109 billion, and further to $32.113 billion on April 23.
By April 24, the reserves increased to $32.118 billion, and on April 25, they reached $32.132 billion.
Read Also: MTN Nigeria’s Net FX Losses Hit Staggering N1.39tr
This upward trajectory continued as the reserves climbed to $32.152 billion on April 26 and further to $32.233 billion by April 29. On April 30, the reserves stood at $32.255 billion, and by May 2, they had grown to $32.285 billion.
The rise persisted on May 3, reaching $32.301 billion, and continued to $32.347 billion by May 6, finally culminating at $32.369 billion on May 7.
Overall, this period saw an increase of $0.262 billion in Nigeria’s FX reserves, showcasing a positive trend reflective of improved economic conditions and effective foreign exchange management.
While the climb is slight, it introduces a positive note in the country’s economic narrative, which has been dominated by concerns over the stability of the Naira and the ability to meet international trade and debt obligations.
