CBN: FG $500m Dollar Bond, Others Shoot Forex Savings To Over $37bn

Nigeria’s external reserves have surged to $37.31 billion, according to figures released by the Central Bank of Nigeria, CBN.

The increase represents a 22-month high of the country’s forex reserves stocks, the News Agency of Nigeria, NAN reports.

The news agency says data from the CBN revealed that as of September 18, the reserves hit the highest level since November 4, 2022 when they stood at $37.36 billion.

The development, analysts insist, is an indication of economic recovery.

According to further analysis of the data from the apex bank, the country’s reserves surged by 12.99 percent, or $4.29 billion, from the $33.02 billion recorded in January this year.

Factors which contributes to the surge, analysts insist, include inflows from the federal government’s domestic dollar bonds, remittance inflows from diaspora Nigerians, World Bank and IMF loans, foreign direct investment, FDI, amongst others.

When compared year-on-year, Nigeria’s foreign reserves grew by 12 percent, adding $4.03 billion to the $33.28 billion recorded on September 18, 2023.

The Federal Government raised over $900 million from investors through the issuance of $500 million, the first series of the $2 billion domestic US dollar bond aimed to stabilise the economy.

Not a few Nigerians were worried last month after the forex reserves declined sharply by $342.97 million to $36.53 billion within nine days.

The federal government responded by issuing a $500 million domestic dollar bond, a move Wale Edun, Minister of Finance and Coordinator of Economy said would enhance external reserves and help stabilise the foreign exchange situation in the country.

Edun said, “This historic issuance will provide essential foreign exchange liquidity and boost reserves, which will help stabilise the exchange rate, manage inflation, and eventually lower interest rates. It will also lay the foundation for increased investment by both domestic and foreign direct investors.”