Foreign reserves to hit $40bn – CBN
The country’s foreign reserves is set to hit $40 billion amidst the naira gaining N20 in the parallel market, a recent data released by the Central Bank of Nigeria (CBN) said.
The exchange rate appreciated in the informal currency market by N20 as demand pressure eased.
The market anticipates that the apex bank will sell dollars to banks before the end of the week to reduce exchange rate volatility driven by liquidity shortages, said MarketForces Africa.
In the parallel market, the naira closed at N1,730 per dollar from N1,750 on Tuesday as currency traders anticipate that the forex auction will reduce the dollar shortage on the supply side.
Data obtained from the CBN shows that gross balance in the external reserves increased above $39 billion benchmark. The surge has been supported by sustained forex inflows at the time when the apex bank slowed down on forex intervention in the market.
Nigeria now has $39.23 billion as the gross balance in the foreign reserves as of October 22, 2024, the latest data obtained from the Central Bank revealed.
