Nigeria’s foreign exchange reserve has rebounded to $32.8 billion, marking a positive shift after a 10-week decline that saw a drop of $1.8 billion. Data from the Central Bank of Nigeria (CBN) shows that as of June 6, 2024, the reserve increased by $110 million from $32.69 billion on May 31.
The reserve’s upward trend has been steady over the past six days, starting at $32.74 billion on June 3, then rising to $32.77 billion on June 4, and reaching $32.79 billion on June 5. This growth indicates a recovery process for Nigeria’s external reserve, which is vital for the country’s economic stability.
The foreign reserve serves as a buffer against economic shocks and is essential for settling international obligations. The recent increase suggests improving economic health, which is crucial for bolstering investor confidence and supporting economic growth.
Nigeria’s FX reserve had dipped between March 18 and May 29, 2024, raising concerns about the country’s financial stability. However, the recent uptrend is a welcome development, indicating potential economic recovery.
The naira has rebounded against the US dollar in both official and parallel markets. This appreciation followed the Central Bank of Nigeria’s announcement of final settlements for all valid foreign exchange backlogs, fulfilling a commitment by the CBN Governor, Mr. Olayemi Cardoso, to address an inherited $7 billion backlog in claims.
