Nigeria’s external reserves have risen significantly, reaching $35.77 billion, according to recent data released by the Central Bank of Nigeria (CBN). This marks a substantial increase from the $33.09 billion recorded at the end of 2023.
The latest figures indicate a $2.68 billion growth in the country’s external reserves over the past six months. Detailed data reveals that the reserves surpassed the $35 billion mark on July 8, climbing steadily to $35.77 billion by Thursday.
Despite this positive development, the CBN’s latest economic report, titled “Macroeconomic Outlook: Price Discovery for Economic Stabilisation,” anticipates a potential decline in the reserves in 2024. The central bank attributes this expected downturn to ongoing obligations such as the payment of outstanding foreign exchange forward contracts, matured foreign exchange swaps, and debt servicing requirements.
However, the CBN also expressed optimism about mitigating these pressures. The bank noted, “The expected improvement in crude oil earnings, together with recent reforms in the foreign exchange market and energy sector, however, would cushion the drop in external reserves.”
In addition to the projections on external reserves, the CBN report forecasts a slight increase in diaspora remittances. The report anticipates that remittances will rise from $19.17 billion in 2023 to $19.42 billion in 2024.
While the report acknowledges potential challenges in maintaining the current reserve levels, it highlights positive economic factors that could help stabilize Nigeria’s external reserves. The interplay between improved crude oil revenues and strategic economic reforms could play a crucial role in balancing the country’s financial stability in the coming year.
