Nigeria’s FX Reserves Rise by $1.03 Billion in One Month, Hitting 4-Year High

Nigeria’s foreign exchange (FX) reserves have surged by $1.03 billion within a month, marking a significant boost in the Central Bank of Nigeria’s (CBN) efforts to strengthen the country’s financial buffer.

According to data from the CBN, reserves climbed from $41 billion on August 19 to $42.03 billion as of September 19—representing a 2.51% increase over the period. This latest figure is the highest Nigeria’s reserves have reached since September 26, 2019.

The upward trend was steady throughout the month. Starting at $41.42 billion on September 1, the reserves rose to $41.57 billion by September 8, $41.84 billion on September 15, and peaked at $42.03 billion on September 19. This steady growth over 19 days saw the reserves increase by $610.7 million.

Analysts say the consistent rise highlights the CBN’s active measures to shore up its FX reserves and build resilience against volatility in the foreign exchange market.

Meanwhile, CBN Governor Olayemi Cardoso recently reiterated the bank’s commitment to boosting Nigeria’s diaspora reserves. Speaking on September 10, Cardoso said the current diaspora reserve stands at $600 million, with a target to reach $1 billion by 2026.

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To support this goal, the CBN, in partnership with the Nigeria Inter-Bank Settlement System (NIBSS), launched the Non-Resident Bank Verification Number (NRBVN) platform in May. The initiative aims to improve access to financial services for Nigerians living abroad and facilitate their participation in the country’s formal financial system.

With reserves on the rise and strategic diaspora-focused initiatives underway, the CBN appears to be laying the groundwork for greater financial stability and enhanced foreign exchange management.