Big Boost for Naira as External Reserves Rise by Over $300m First 10 Days of June

Big Boost for Naira as External Reserves Rise by Over $300m First 10 Days of June

  • The CBN has revealed that foreign reserves have increased significantly in the first ten days of June
  • The rise in FX reserves will give CBN more firepower to intervene in the forex market and ensure naira exchange rate stability
  • Dollar supply has always been a major reason for naira depreciation due to demand pressure from companies and travellers journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigeria's foreign exchange (forex) reserves have significantly increased in the first ten days of June 2024.

Data from the Central Bank of Nigeria showed that the foreign reserves have increased to $33.08 billion as of Monday, June 10, 2024.

Nigeria external reserve rises
Nigeria's external reserves rise to 2-month high Photo credit: CBN
Source: Facebook

The latest foreign reserves balance is $387.18 million or a 1.18% improvement compared to the $32.69bn the reserves stood at the end of May 2024.

Read also

Traders buy cheap petrol in Nigeria to sell for N1,700/litre in other markets

The boost in Nigeria's reserves is due to $925 million received from the African Export-Import Bank (Afreximbank) as part of the $3.3 billion crude oil-backed prepayment loan agreement with the Nigerian National Petroleum Company (NNPC) Limited.

Why are foreign reserves important?

Foreign reserves serve as a buffer to support the stability of the Nigerian currency in the international foreign exchange market.

When the CBN intervenes in the foreign exchange market, it uses its foreign reserves to influence the supply and demand of the naira.

The foreign reserves also serve as a means to protect against external shocks and ensure the country's ability to meet its international obligations.

The increase in reserves means that the CBN now has the firepower to intervene in the foreign exchange markets and reduce the pressure of demand for dollars.

Read also

CBN gives new exchange rate as naira appreciates against pound, euro

Already, there is a slight improvement in the naira's performance in the foreign exchange market, and it is expected to continue.

On Tuesday, June 11, the naira appreciated to N1473.66 in the official market from N1483.62 a day earlier.

FG addresses Naira to dollar exchange rate earlier reported that Ben Akabueze, the director-general of the federation's budget office, said the Naira would strengthen in value in the foreign exchange market in 2024.

Akabueze said this would be possible as the country expects an increase in dollar supply.

He noted that the Tinubu-led government expects the reforms to start yielding results in 2024, which is why it maintains a positive stance on the exchange rate.


Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email:

Online view pixel