The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced on Tuesday that the nation’s foreign reserves increased by 12.74% to $39.12 billion as of October 11, 2024. This statement was made during a session with the House of Representatives Committee on Banking Regulation.
Cardoso highlighted that the reserves were recorded at $34.70 billion at the conclusion of June 2024. He remarked, “The reserves have seen a notable rise of 12.74% from $34.70 billion at the end of June 2024 to $39.12 billion as of October 11, 2024.”
The CBN Governor noted that this growth is significantly attributed to remittance flows, which currently account for 9.4% of the total external reserves.
He further elaborated, “In the second quarter of 2024, we achieved a current account surplus and observed considerable improvements in our trade balance.”
According to Cardoso, the current level of external reserves is sufficient to cover over 12 months’ worth of imports for goods and services or up to 15 months for goods alone. This figure is considerably higher than the internationally recommended benchmark of 30 months, indicating a strong buffer against external economic shocks.
In discussing the foreign exchange market, Cardoso explained that the bank has implemented a range of reforms, including a unification strategy that merges various exchange rate windows into a single framework. This approach, characterized by a ‘willing buyer, willing seller’ model, aims to improve foreign exchange liquidity and ensure stability in the financial market.
“This initiative is designed to promote transparency, minimize market distortions, and enhance the efficiency of foreign exchange allocations,” he added. The consolidation also involved introducing new operational guidelines, including the removal of the quote cap for international money transfer operators (IMTOs).
