LAGOS, Sep 20 (AGCNewsNet) - Nigeria's foreign reserves have experienced a net inflow of $2.35 billion in the first seven months of 2024, according to Wale Edun, Nigeria's Minister of Finance and Coordinating Minister of the Economy. Speaking at the Corporate Customers Forum in Lagos, Edun emphasized the government’s efforts to enhance foreign exchange liquidity, resulting in a rise in gross reserves and a gradual elimination of multiple exchange rates.

The minister credited the successful growth of the country’s reserves to strong government policies and increasing revenue. He highlighted a report from the Central Bank of Nigeria (CBN) which revealed that the nation's foreign reserves jumped by $621.2 million in just 10 days, following the oversubscribed sale of a domestic dollar bond.

According to CBN data, Nigeria’s gross foreign exchange reserves increased from $36.24 billion on September 2, 2024, to $36.87 billion by September 12, 2024, buoyed by the bond sale, which exceeded expectations by $400 million. The bond issue helped to stabilise the naira, which recovered sharply against the US dollar this week.

On Wednesday, September 18, 2024, the naira closed at N1,539.65/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX), a significant improvement of 7.1% from the previous day’s rate of N1,656.49/$1. The naira's resurgence was linked to a 38.9% increase in foreign exchange transactions, with $139.48 million traded on Wednesday compared to $100.39 million the previous day.

Reports indicate that the naira had reached its worst exchange rate since February 2024 earlier this week, trading at N1,656 per dollar on Tuesday. The recent improvement reflects an increase in forex supply to the market, contributing to the currency’s rebound.

Despite these positive developments, Nigeria continues to face challenges, particularly in stabilising the exchange rate and maintaining the upward momentum in foreign reserves.