BIG BOOST FOR NAIRA AS NIGERIA’S FOREIGN RESERVES HIT 2-YEAR HIGH

Nigeria's foreign reserves have surged to $40.08 billion, marking the highest level in almost two years, according to the Central Bank of Nigeria (CBN). This significant increase reflects a $1.7 billion growth since the end of September, when reserves were at $38.3 billion. The CBN's efforts to encourage foreign currency inflows through formal channels and remittance-targeted reforms have contributed to this boost.

The rise in foreign reserves is attributed to several factors. Improved remittances from the CBN's engagement with International Money Transfer Operators (IMTOs) and the Nigerian diaspora have led to increased remittances, with monthly inflows rising from $250 million to $600 million. Foreign exchange reforms have encouraged foreign currency inflows through formal channels, helping to stabilize the naira. The CBN's efforts to engage with the Nigerian diaspora have been critical to the recovery of foreign reserves.

CBN Governor Olayemi Cardoso noted that the current reserves level is the highest in nearly three years, highlighting the success of the bank's policy interventions aimed at stabilizing the naira and enhancing foreign currency inflows. This development is expected to provide a big boost for the naira, which has faced significant challenges in recent times. The increased reserves will help improve Nigeria's ability to meet its international obligations, reduce foreign exchange pressure, and attract foreign investment. As a result, the naira is likely to appreciate against major currencies, making imports cheaper and reducing inflationary pressures. Overall, this development is a positive sign for Nigeria's economy.