In recent weeks, Nigeria’s external reserves showed positive growth, increasing by $424.68 million from August 30 to September 10, indicating a better financial outlook for the country.
Data from the Central Bank of Nigeria revealed this rise in the foreign exchange reserves, which are essential for stabilizing the naira, supporting imports, and managing external commitments. The reserves went up from $36.305 billion on August 30 to $36.730 billion by September 10, marking a 1.17% increase over the 11-day period.
External reserves consist of foreign assets held by a central bank to support liabilities and influence monetary policies.
Although a slight decrease to $36.244 billion occurred on September 2, with a $61 million decline, a subsequent recovery saw the reserves rise to $36.274 billion on September 3, reflecting a $30 million gain.
Further analysis of the report revealed that on September 4, the reserves returned to the August 30 level, reaching $36.304 billion.
The positive trend continued as the reserves increased to $36.337 billion on September 5, showing a $33 million rise. A more substantial increase occurred on September 6, with reserves growing by $55 million to $36.392 billion.
The most significant surge in reserves was observed between September 6 and September 9, with reserves increasing by $250 million to reach $36.642 billion. This upward trend continued on September 10, with reserves further rising by $88 million to $36.730 billion.
The Central Bank attributed this growth to changes in the foreign exchange market, evolving trade patterns, economic institutional adjustments, and production shifts within the country.
Additionally, Nigeria’s foreign exchange reserves experienced a temporary decline of $342.97 million to $36.53 billion over nine days due to the recent sale of $876.26 million to meet demands from importers and other users through the Retail Dutch Auction System.
Furthermore, Nigeria’s inaugural foreign-currency domestic bond garnered subscriptions totaling $900 million.