Nigeria’s foreign exchange reserve has steadily increased over the last six days, following a 10-week decline of $1.8 billion, suggesting that the country’s external reserve is beginning to recover.
Data from the Central Bank of Nigeria’s website was obtained by PUNCH Online on Sunday. As of June 6, 2024, the foreign reserve was $32.80 billion, up $110 million from $32.69 billion on May 31.
For the last six days, there has been a steady increase in the reserve, which went from $32.74 billion on June 3 to $32.77 billion on June 4 to $32.79 billion on June 5 before reaching its present level.
The Nigerian economy, which has recently suffered difficulties, is pleased to see the consistent growth in the foreign reserve.
The reserve decreased by $1.8 billion between March 18 and May 29, 2024, according to The PUNCH, raising questions about the nation’s capacity to pay its debts.
The economy may be headed towards recovery, nevertheless, based on the recent gain. A nation’s foreign reserve is essential to its economic stability because it acts as a safety net against shocks to the economy and gives it the money it needs to pay its debts to other countries.
Nigeria’s foreign reserve is predicted to rise further with this consistent gain, boosting investor confidence and promoting economic expansion.
According to PUNCH Online, the naira strengthened against the US dollar in late March on both the official and illicit markets. On the black market, the local currency saw a notable increase in value relative to the US dollar.
This occurred concurrently with the announcement of the Central Bank of Nigeria that all legitimate foreign exchange backlogs had been finalised, meeting a significant commitment made by Mr. Olayemi Cardoso, the apex bank governor, to handle an inherited backlog of $7 billion in claims.
