How Nigeria's external reserves grew by $2.29 billion in three months

Nigeria’s external reserves rose by $2.29 billion in three months, up from $36.01 billion by July 19, 2024, to $38.93 billion by October 19, 2024.

Data from the Central Bank of Nigeria shows that the reserves grew by 8.1%, showing an improved inflow of FX into Nigeria and a positive shift from the country’s external reserves.

The last time the country’s reserves rose to the limit was on September 9, 2022, at $38.92 billion.

During the period under review, the country’s reserves stood at $36.01 billion on July 19, 2024.

The reserves showed steady growth throughout July, ending the month at $36.79 billion, an increase of $785 million in just two weeks.

The upward movement continued in August as the reserves hit $36.83 billion by August 2 and grew steadily to $36.87 billion by August 6 2024.

However, the reserves reversed to $36.83 billion, showing strength and marginal growth, adding $50 million between July and August 2024.

The CBN data shows that the reserves rose by $833 million in July and August, a 2.3% growth in under two months.

September saw a turning point in Nigeria’s reserves, beginning at $36.24 billion.

The nation’s reserves increased throughout September, growing from $36.24 billion as of September 2 to $38.35 billion by the end of the month.

The sharp increase in reserves during the month shows a significant improvement in FX exchange inflows, possibly driven by more substantial oil export revenues, external borrowing, and increased investor interest in Nigeria’s financial markets.

The data shows that the reserves grew by 5.8% by the end of September, making it the highest growth recorded during the three months under review.

In October, the momentum continued as the reserves grew throughout the month, reaching $38.92 billion by October 17, 2024.

The continued rise of the reserves saw an increase of $570 million in just two weeks.

According to reports, the reserves increased by $129 million between October 14 and 19, demonstrating sustained inflows into Nigeria’s account.

By mid-October, the reserves rose to $38.92 million, marking a high point for Nigeria. They grew by 1.5% from the beginning of the month to mid-October.

TimesNow.com.ng earlier reported that CBN disclosed that foreign exchange inflows via International Money Transfer Operators (IMTOs) rose by 47% to $2.33 billion in the first six months of this year relative to the $1.58 billion recorded in 2023. 

The development comes amid the apex bank’s policies allowing eligible IMTOs to access naira liquidity at the official forex window. 

Recently, the apex bank released some measures to boost the FX markets and increase remittance inflows via formal channels.