The Central Bank of Nigeria (CBN) has reported that the country’s external reserves have continued to rise, reaching $34.14 billion on Friday, June 30, 2024.
This represents a 4.06% increase from the $32.74 billion recorded on June 3, 2024.
World Bank Loans Boost Reserves
The recent loans secured from the World Bank have contributed significantly to the growth of Nigeria’s reserves. In May, the Federal Government received a $500 million loan to improve the country’s electricity distribution sector. Additionally, the World Bank announced that Nigeria would receive $2.25 billion in support to stabilize the economy.
Economic Impact
The World Bank stated that the $2.25 billion package would provide immediate financial and technical support to Nigeria’s efforts to stabilize the economy and support the poor and vulnerable. The loan is also expected to support Nigeria’s efforts to raise non-oil revenues and promote fiscal sustainability.
Reserves Gain Over $1bn in One Month
The external reserves have gained over $1 billion in just one month, a significant improvement from the country’s struggles with a dollar shortage last year. The naira, however, has depreciated by over 300% in the past year, making it the worst-performing currency in the world in the first half of 2024, according to a Bloomberg report.
CBN Governor Optimistic
Despite the challenges, the CBN Governor, Olayemi Cardoso, expressed optimism about the progress made in stabilizing the local currency. “I do believe that we have more or less seen the worst in terms of volatility,” Cardoso told Bloomberg TV.
CBN Initiatives
The central bank has taken several initiatives to improve the dollar supply in the country and stabilize the local currency. These include allowing International Money Transfer Operators to access the official window to sell forex and resuming the sales of dollars to bureau de change operators.
