Nigeria’s Foreign Reserves Hits 4-month High of $33.45bn

Nume Ekeghe

In a promising turn of events, Nigeria’s foreign reserves have surged to $33.45 billion as of February 21, 2024, marking a significant four-month high.

This positive momentum comes amid persistent economic challenges and recent foreign exchange shortages that have been a source of concern for the nation.

Data released by the Central Bank of Nigeria (CBN) indicate that this figure represents the highest foreign reserves have been in the past four months.

The last time such a robust level was recorded was on August 4, 2023 when the reserves stood at $33.46 billion.

Analysts believe this consistent increase in foreign reserves provides a glimmer of hope and suggests that concerted efforts to address foreign exchange shortages are making headway, contributing to the fortification of Nigeria’s external financial position.

“Despite the prevailing economic struggles, the surge in foreign reserves signals a degree of stability, acting as a financial buffer that could pave the way for improved economic conditions, “they said.

The analysts added that the central bank’s proactive measures to manage and stabilise the foreign exchange market seem to be yielding positive outcomes, evident in the sustained upward trajectory of foreign reserves.

“The resilience displayed by the reserves is anticipated to be closely monitored by analysts and investors, potentially influencing market sentiment and impacting investment decisions within the country, “the stated.

Meanwhile, analysis of the day-to-day movement of the foreign reserves for February showed that it sustained a gain although the month.

On February 5th, the reserves stood at $33 billion, experiencing a slight dip to $33.1 billion on February 8th.

However, a notable reversal in the trend occurred on February 13th as the reserves surged to $33.2 billion. This positive movement persisted, with reserves climbing to $33.21 billion on February 14th.

Continuing this upward trajectory, February 15th saw another increment, bringing the reserves to $33.26 billion. The positive trend persisted through February 16th, with reserves reaching $33.29 billion. February 19th witnessed a further growth as reserves rose to $33.39 billion. On February 20th, a subsequent increase was noted, with reserves reaching $33.41 billion before culminating in the four-month high of $33.45 billion on February 21st.

As Nigeria grapples with economic uncertainties, market watchers insist the foreign reserves serve as a critical indicator for assessing the overall health of the economy.

“The recent climb to a four-month high instils confidence and optimism, suggesting a potential turning point in the nation’s economic landscape.

“The coming months will likely see increased attention on how this positive momentum unfolds and its implications for Nigeria’s economic recovery, “they explained.