Market News

BY  Nume Ekeghe

Nigeria’s external reserves witnessed substantial increase of $4.35 billion over the past three months to reached a 16-month high of $36.5 billion as of July 26, 2024.

This significant growth, as reported by the Central Bank of Nigeria (CBN), reflects a positive trend in the nation’s financial health and stability.

The last time Nigeria’s external reserves were within this range was on March 28, 2023, when they stood at $36.66 billion.

In the past three months, the country’s external reserves have shown a consistent upward trajectory. Starting at $32.15 billion on April 26, 2024, the reserves experienced steady growth, reaching $33.99 billion by June 25, 2024. The reserves crossed the $34 billion mark on July 1, 2024, continuing their ascent to $35 billion by July 8, 2024, and ultimately peaking at $36.5 billion on July 26, 2024.

A three-month breakdown showed that the reserves began their climb from $32.15 billion on April 26, 2024, to $32.23 billion by April 29, 2024, showing an increase of $80 million in just three days. By April 30, 2024, the reserves had risen further to $32.25 billion, marking a total increase of $100 million by the end of the month.

May continued the upward trend with the reserves reaching $32.73 billion on May 24, 2024. On May 27, 2024, the reserves had slightly increased to $32.69 billion, indicating a minor dip before stabilizing. By the end of May, the reserves had shown a steady accumulation, reaching $32.69 billion on May 31, 2024, demonstrating an overall increase of $440 million for the month.

However, June saw a significant rise, with the reserves hitting $33.3 billion on June 13, 2024, an increase of $610 million from the end of May. This upward trajectory continued with the reserves reaching $34.1 billion by June 28, 2024, reflecting an impressive growth of $800 million within just 15 days. By June 30, 2024, the reserves stood at $34.19 billion, marking a total increase of $1.5 billion for the month.

Furthermore, July marked the most substantial growth, with reserves rising from $34.34 billion on July 1, 2024, to $36.5 billion by July 26, 2024. This period of rapid accumulation underscores the effectiveness of the country’s financial strategies and external economic conditions. The reserves reached $35.05 billion by July 8, 2024, and continued to climb steadily, hitting $36.23 billion on July 22, 2024. By July 25, 2024, the reserves had grown to $36.44 billion and ultimately peaked at $36.5 billion on July 26, 2024.

This represents a remarkable increase of $2.16 billion within 25 days, showcasing the robust economic management and favourable external conditions during this period.