Nigeria’s Foreign Reserves Rise Marginally To $32.74bn

The Central Bank of Nigeria (CBN) has revealed that the country’s foreign reserves rose to $32.74 billion as of the end of May 22, 2024 from $32.10 billion in April 22, 2024.

This represents a 2 percent increase ($640 million) in foreign reserves within the period, while marginal, the rise can be attributed to the increase in oil prices and high monetary policy rates.

The level of Nigeria’s foreign reserves strongly determines the strength of Naira over the US dollar.

“To further increase foreign reserves over the next few months to stabilise the exchange rate, it is important to diversify export earnings beyond the sale of crude oil. Nigeria mostly depends on the oil market for its foreign exchange earnings; therefore, increasing exports from industries like manufacturing can help reduce the volatility in foreign reserves brought on by changes in the oil market and low crude oil production levels,” a financial analyst said.

“Additionally, intentional efforts should be made to increase investors’ confidence and attract private capital by enacting policies that remove barriers to doing business and addressing security challenges,” he added.