The Governor of the Central Bank of Nigeria (CBN) has announced that external reserves currently stand at $36.89 billion.
The governor of the CBN, Olayemi Cardoso, has provided reassurance to the Nigerian people, expressing optimism for the future and highlighting the rise in the country’s external reserves to US$36.89 billion as of July 16, 2024.
Cardoso revealed this information on Friday in Abuja, as he presented the growth and economic stability indices during the regular meeting with the Senate Committee on Banking, Insurance, and other Financial Institutions.
The Governor said, “The spread between official and BDC rates has narrowed significantly from N162.62 in January to N47.22 in June 2024, indicating successful price discovery, increased market efficiency, and reduced arbitrage opportunities.”
“The stock of external reserves increased to US$36.89 billion as of July 16, 2024, compared with US$33.22 billion at end-December 2023, driven largely by receipts from crude oil related taxes and third-party receipts.
“In Q1 2024, we maintained a current account surplus and saw improvements in our trade balance. Our external reserves level as at end-June 2024 can finance over 11 months of import of goods and services, or 14 months of goods only.
“This is significantly higher than the prescribed international benchmark of 3.0 months, indicating a strong buffer against external shocks.
“The banking sector remains robust and diverse, comprising twenty-six commercial banks, six merchant banks, and four non-interest banks. Key indicators such as capital adequacy, liquidity, and non-performing loan ratios all showed impressive improvements, underscoring the sector’s growing stability and resilience.
“The equity market has shown impressive performance, with the All-Share Index rising by 33.81 per cent and market capitalization expanding by 38.33 per cent from December 2023 to June 2024, reflecting growing investors’ confidence.
“While we are encouraged by these positive trends, the CBN remains vigilant and committed to implementing policies that support sustainable growth in our financial markets, while maintaining overall economic stability”, Cardoso alluded.