Nigeria’s FX reserves hit $51.03bn, highest level since 2009

NIGERIA’S foreign exchange reserves climbed to $51.03 billion on Thursday, marking the highest level recorded in more than 17 years, according to data from the Central Bank of Nigeria (CBN).

The latest figure is the strongest reserve position recorded this year and the highest under the leadership of CBN Governor Olayemi Cardoso. The last time reserves were at a comparable level was January 20, 2009, when they stood at $51.07 billion.

CBN data showed that reserves expanded by $1.85 billion between April 1 and June 18, representing a 3.76 percent increase. At the beginning of the second quarter (Q2), reserves were $49.18 billion before rising steadily to the current level.

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Nigeria’s external reserves had earlier crossed the $50 billion mark on March 10, reaching $50.01 billion. The upward trend continued in the following months, with reserves increasing to $50.11 billion on June 5 before surpassing the $51 billion threshold.

The growth in reserves followed changes introduced by the CBN to the operations of international money transfer operators (IMTOs) in March. Under the revised arrangement, all IMTOs were required to open naira settlement accounts and process remittance transactions through those accounts.

As a result, recipients of diaspora remittances have been receiving funds in naira since May, replacing the long-standing practice of dollar-denominated payouts to Nigerians receiving money from relatives abroad.

According to the apex bank, the measure forms part of broader efforts to strengthen Nigeria’s remittance ecosystem under the revised guidelines for international money transfer services released in January 2024.