CBN Governor Announces Fresh $600m Boost to Nigeria’s FX Reserves Amidst Naira Appreciation

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that the country’s foreign exchange reserves have received a fresh inflow of $600 million.

This injection of funds is expected to further strengthen the Naira against the Dollar in the official market, with the exchange rate potentially dropping below N1,074 per Dollar in the coming days.

Cardoso made this announcement at the International Monetary Fund’s (IMF) spring meetings in Washington D.C.

He clarified that the recent shifts in the country’s reserves have no connection to defending the Naira in the foreign exchange (FX) market.

Instead, the CBN is focused on achieving independence in the FX market, where market forces determine the exchange rate without central bank intervention.

The CBN governor emphasized that the central bank’s recent sales of foreign exchange were aimed at stimulating the Bureau de Change market.

He reiterated the importance of maintaining sufficient liquidity in the market and expressed optimism about a future where the central bank would not need to intervene in the FX market.

As of April 15, Nigeria’s foreign exchange reserves stood at $32.29 billion. With the additional $600 million inflow, the external reserves are expected to rise to approximately $33.49 billion.

This increase in reserves is a positive sign for the country’s economy, as it indicates a strengthening of the Naira and a potential boost in investor confidence.

The recent boost to Nigeria’s foreign exchange reserves is a significant step towards achieving a more stable and independent FX market.

As the CBN continues to focus on market-driven exchange rates and increased liquidity, the country’s economy is expected to benefit from increased foreign investment and a more robust financial system.