News Investigators/ The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, on Tuesday said the country’s foreign reserves rose by 12.74 per cent to $39.12 billion as of October 11.
Mr. Cardoso noted that the reserves have “grown significantly” with remittance flows which currently represent 9.4 per cent of total external reserves.
The CBN governor who spoke at a meeting with the House of Representatives Committee on Banking Regulation, said that the nation’s foreign reserves stood at $34.70 billion as at the end of June.
“The reserves rose by 12.74% to $39.12 billion as of October 11, 2024, from $34.70 billion at the end of June 2024,” he said, adding that “In Q2 2024, the country maintained a current account surplus and saw remarkable improvements in our trade balance.
“The current external reserves position can finance over 12 months of import of goods and services or 15 months of goods only,” Mr. Cardoso said.
According to him, “This is substantially higher than the prescribed international benchmark of 30 months, reflecting a robust buffer against external shocks.
“Regarding the foreign exchange market, the bank implemented various reforms including a unification strategy, which streamlined various exchange rate windows into a single model, adopting the willing buyer, willing Seller’ approach to enhance FX liquidity and financial market stability.
“This move was aimed at fostering transparency, reducing market distortions, and enhancing the efficiency of foreign exchange allocations.
“This consolidation involved the implementation of new operational guidelines which included removing the international money transfer operators (IMTOs) quote cap,” he added.
