Nigeria's external reserves have experienced a notable increase, reaching $39.76 billion as of Wednesday October 30.
This marks a significant rise from the $38.35 billion recorded at the end of September, according to data from the Central Bank of Nigeria (CBN).
The growth in reserves is largely attributed to improved diaspora remittances, a factor highlighted by CBN Governor Olayemi Cardoso during his recent appearance at the National Assembly.
Governor Cardoso emphasized the importance of this development, stating, "This is substantially higher than the prescribed international benchmark of 30 months, reflecting a robust buffer against external shocks."
This increase provides Nigeria with a strong financial cushion amidst global economic uncertainties.
Despite the positive trajectory of the reserves, the Nigerian naira continues to face challenges, fluctuating against the US dollar. As of November 1, the naira stood at N1666.72 per dollar, indicating ongoing pressure for devaluation.
The context of these reserve figures was further discussed during the 297th Monetary Policy Committee meeting in September, where it was announced that reserves had previously risen to $39.07 billion.
While the boost in remittances supports reserve growth, Nigeria still grapples with currency volatility, although current reserves align with international standards for financial stability.
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