Recent data released by the Central Bank of Nigeria reveals a significant increase in external reserves, surging by $993 million within a month and reaching an eight-month peak.
As of March 7, 2024, the external reserves totaled $34,110,027,381, compared to the previous month’s figure of $33,116,051,881 recorded on February 8, 2024.
Analysis of the data indicates that the reserves had been relatively hovering around $32 to $33 billion over the past eight months, with the current March 7 record marking the highest point since June 30, 2023, when the reserves reached $34,119,447,986.
Last week, the CBN reported a surge in overseas remittances, reaching $1.3 billion in February, a substantial increase from the previous month’s $300 million.
Mrs. Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at CBN, stated that foreign investors acquired over $1 billion worth of Nigerian assets in the same month. She emphasized the heightened foreign exchange inflow in February, driven by increased remittance payments from Nigerians abroad and foreign portfolio investors’ interest in naira assets.
Ali noted that the trend continued into March, propelled by rising investor interest in short-term sovereign debt following adjustments to benchmark interest rates. She highlighted oversubscribed government securities issuances, with foreign investors contributing over 75 per cent of bids received at auctions conducted on March 1 and 6, 2024.
During last month’s Monetary Policy Committee meeting and a conference call with foreign portfolio investors, CBN Governor Mr. Olayemi Cardoso outlined a comprehensive strategy aimed at curbing inflation, stabilizing the exchange rate, and boosting confidence in the banking system and the overall economy. Cardoso expressed satisfaction with the initial results, stating, “Our objective today is to ensure that the market has supply, that the market functions, and that investors can come in and go out.”
