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After a 10-week decline amounting to $1.8 billion, Nigeria’s foreign exchange reserve has begun to recover, showing a steady increase over the past six days. This indicates a positive shift for the economy’s external reserve.
According to data from the Central Bank of Nigeria’s website, the foreign reserve stood at $32.80 billion on June 6, 2024. This marks an increase of $110 million from $32.69 billion on May 31.
This upward trend has been consistent, with the reserve rising from $32.74 billion on June 3 to $32.77 billion on June 4, and then to $32.79 billion on June 5, reaching the current value.
The increase in the foreign reserve is a promising sign for the Nigerian economy, which has faced significant challenges recently. The reserve had previously dipped by $1.8 billion between March 18 and May 29, 2024, raising concerns about the country’s ability to meet its financial obligations. However, the recent uptick suggests that the economy is on the path to recovery.
Foreign reserves are a critical component of a country’s economic health, serving as a buffer against economic shocks and providing the means to settle international obligations. The recent increase in Nigeria’s reserves is expected to continue, thereby bolstering investor confidence and supporting economic growth.
The local currency recorded significant gains against the greenback in the black market. This recovery coincided with the Central Bank of Nigeria’s announcement of the final settlements of all valid foreign exchange backlogs, fulfilling a key pledge by the apex bank governor, Mr. Olayemi Cardoso, to process an inherited backlog of $7 billion in claims.
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