CBN’s reforms drive $86.67m surge in forex reserves, boost naira stability
By Seun Ibiyemi
Nigeria’s gross foreign exchange (forex) reserves rose by $86.67 million to $38.10 billion last week, marking the second consecutive week of growth.
The uptick is attributed to a series of strategic reforms by the Central Bank of Nigeria (CBN) aimed at attracting sustained inflows into the economy.
According to data from the apex bank, the growth in reserves strengthens the CBN’s capacity to stabilise the naira and intervene in the foreign exchange market, enhancing the country’s import cover to nearly 10 months.
Analysts suggest that these improvements could lead to long-term exchange rate stability.
“Stronger forex reserves will support the CBN’s market interventions and reduce naira volatility,” said Director of Trading at Verto, Charlie Bird during the “Naira Playbook” seminar organised by Cordros Asset Management.
Under the leadership of Governor Olayemi Cardoso, the CBN has rolled out a suite of reforms to enhance dollar inflows.
These include granting licenses to new International Money Transfer Operators (IMTOs), launching a willing buyer-willing seller FX model, and enabling quicker naira liquidity access for IMTOs.
In a bid to leverage the estimated $23 billion in annual diaspora remittances, the CBN also introduced two new financial products, the Non-Resident Nigerian Ordinary Account and the Non-Resident Nigerian Investment Account.
These are designed to streamline remittance processes and encourage diaspora investments.
Further strengthening the framework, the CBN released updated guidelines for IMTO operations and introduced new measures to enhance local currency liquidity for remittance settlements, reflecting a commitment to improving transparency and efficiency in the FX market.
With foreign investors and airlines now able to repatriate funds more freely, confidence in Nigeria’s foreign exchange regime is on the rise.
“Nigeria has become a darling of foreign investors again due to improved dollar liquidity and credible policy direction from the CBN,” Bird noted.
Experts say continue
