By Abiola Olawale
Nigeria has experienced a remarkable increase in its foreign exchange (FX) reserve, with a growth of $621.2 million in 10 days.
This came after a successful sale of a domestic dollar bond.
According to official data obtained from the Central Bank of Nigeria (CBN), gross FX reserves increased from $36.24 billion on September 2, 2024, to $36.87 billion by September 12, 2024.
The New Diplomat reports that during the period between September 2 and September 3, 2024, there was an increase in reserves from $36.24 billion to $36.27 billion, indicating a nominal rise of approximately $30 million.
The reserves experienced continuous growth in the following days, amounting to $36.30 billion by September 4 and escalating to $36.33 billion by September 5. These successive increments indicate a consistent influx of foreign exchange into the nation.
By September 6, 2024, the reserves had risen to $36.39 billion, marking a more significant increase as the CBN’s bond strategy which gained traction. According to analysts, the rise between September 6 and September 9, when reserves hit $36.64 billion, reflects a particularly strong phase of accumulation.
According to experts this $250 million growth over a weekend suggests robust demand for Nigeria’s dollar bond and reflects increased liquidity entering the financial system.
The trend continued into the second week of September, with reserves reaching $36.73 billion on September 10, before climbing further to $36.81 billion on September 11. The largest single-day increase occurred between September 11 and September 12, 2024, with reserves jumping by $54.4 million, culminating in the final figure of $36.87 billion.
