Ayomide Otitoju
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced on Tuesday that the country’s foreign reserves have increased by 12.74%, reaching $39.12 billion as of October 11, 2024. This was revealed during his appearance before the House of Representatives Committee on Banking Regulation.
Cardoso highlighted that Nigeria’s foreign reserves stood at $34.70 billion at the end of June 2024, marking a significant rise over the subsequent months. “The reserves rose by 12.74% to $39.12 billion as of October 11, 2024, from $34.70 billion at the end of June,” he stated.
He attributed the growth to increased remittance inflows, which now account for 9.4% of the total external reserves. Cardoso also pointed out that Nigeria recorded a current account surplus in Q2 2024, alongside improvements in the trade balance.
According to the CBN governor, the current foreign reserves level can finance over 12 months of imports of goods and services or 15 months of goods alone, well above the international benchmark of 30 months. This robust position provides a strong buffer against external shocks.
Cardoso also discussed recent reforms in the foreign exchange market, including the unification of various exchange rate windows into a single system. The “willing buyer, willing seller” model has been adopted to enhance liquidity and stabilize the financial market. Additionally, the CBN removed the cap on international money transfer operators (IMTOs), further fostering transparency and reducing market distortions.
