Nigeria’s foreign exchange (FX) reserves surged to $41.00 billion as of August 19 this year, representing the highest accruals in 44 months.
The just published FX reserves by the Central Bank of Nigeria (CBN), reflected that latest value of the FX reserves marks a steady external accretion witnessed in recent weeks, with the reserves growing by roughly $81 million per day in August.
According to the apex bank, the reserves have staged a strong rally in August, adding about $1.46 billion month-to-date, from $39.54 billion on 1 August to $41.00 billion by 19 August, indicating a 3.69% growth in less than three weeks.
The published report on the CBN website reflected that the FX build-up started from early August, when reserves crossed the $40 billion threshold on 7 August, after closing July below $39.4 billion.
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The report year-to-date indicated modest gains, with Nigeria’s reserves opening the year at $40.88 billion on 31 December 2024, closing as of August 19 at $41.00 billion, representing an increase of about $124 million or 0.30%.
An analysis of the FX accruals trend showed that most of the 2025 gains happened in the past five weeks, following a relatively subdued first half of the year.
The recent improvement in the FX reserves is remarkable given the drawdowns that followed through 2022 and 2023, when reserves struggled to hold above $38 billion.
For instance, by enhancing Nigeria’s sovereign credit profile, it reassures investors about the government’s ability to fulfill external obligations, while also empowering the apex bank to effectively manage liquidity shocks and maintain financial system stability.
The FX reserves have also been complemented by sustained stability in the domestic FX market based on increased capital inflows, improved crude oil production, rising non-oil exports, and reduced imports.
Analysts attributed the improved FX reserves to the apex bank’s hawkish monetary policy stance which has helped to stabilize the Naira in the official FX market, manage liquidity in the economy, and forestall speculative pressure in the markets.
