Nigeria’s foreign exchange (FX) reserves have increased by $337.89 million week-on-week to reach $36.9 billion as of September 12, 2024.
This marks a 1.5% rise in reserves, driven by inflows, including $900 million from the recently concluded Federal Government of Nigeria (FGN) US Dollar bond. Data from the Central Bank of Nigeria (CBN) highlights a steady upward trend in reserves.
The rise in FX reserves comes alongside a 3% increase in Brent crude oil prices to $73.20 per barrel, partly supported by OPEC+’s decision to postpone production hikes.
The domestic bond market also saw strong activity, with the inaugural dollar-denominated bond oversubscribed by $400 million.
Despite CBN’s $121 million intervention in the FX market, the naira appreciated by 3% to N1,546.41 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
However, total turnover at NAFEM fell by 15.7% to $980.92 million. In the forwards market, naira rates fluctuated, with decreases in the 1-month and 3-month contracts but gains in the 6-month and 1-year contracts.
Analysts caution that the naira may remain under pressure due to ongoing market demand outpacing supply, despite CBN interventions and limited foreign portfolio investment inflows.
(The Nation)