Nigeria’s external reserves recorded an increase of $424.68 million between August 30 and September 10, highlighting an improved financial outlook for the country.
Data sourced from a report by the Central Bank of Nigeria (CBN) and analysed on Thursday showed the rise in the country’s foreign exchange reserves.
The reserves, crucial for stabilising the naira, financing imports, and managing external obligations, rose from $36.305bn on August 30 to $36.730bn by September 10, representing a 1.17 per cent increase over the 11 days.
External reserves are foreign-denominated assets held by a central bank to back liabilities and influence monetary policy.
However, a slight dip to $36.244bn was recorded on September 2, representing a minor decline of $61m. This was followed by a recovery, with the reserves rising to $36.274bn on September 3, reflecting a gain of $30m.
A further analysis of the report indicated that on September 4, the reserves had returned to their August 30 level, reaching $36.304bn.
The positive trend continued on September 5, as the reserves climbed to $36.337bn, representing an increase of $33m. A more substantial gain occurred on September 6, with reserves growing by $55m to $36.392bn.
The most significant jump in the reserves was seen between September 6 and September 9, when the reserves surged by $250m to reach $36.642bn. This upward movement persisted on September 10, with reserves further increasing by $88m to $36.730bn.
The apex bank attributed the growth to the evolution of the foreign exchange market in Nigeria, changing patterns of international trade, institutional changes in the economy, and structural shifts in production.
SOURCE: economicconfidential.com