By Ayo Kehinde
A fortnight after Governor of the Central Bank of Nigeria, Olayemi Cardoso openly celebrated $52.04 billion as the country’s foreign reserve high in over a decade, it declined by $114 million in seven days.
According to the latest data released by the apex bank figures for the external reserves fell from $52.04 billion recorded on July 22 to $51.92 billion as of July 29.
The decline marks the first notable pullback after several weeks of sustained gains that pushed the country’s external reserves above the $52 billion threshold for the first time in more than 16 years.
Despite the recent moderation, Nigeria’s reserves remain significantly higher than their level at the end of June, highlighting continued improvement in the country’s external position.
Reserves remain above end-June level. CBN data showed that reserves eased gradually during the review period.
The balance slipped to $52.03 billion on July 23 before declining further to $52.02 billion on July 24.
Reserves fell to $51.97 billion on July 27, declined to $51.94 billion on July 28, and closed at $51.92 billion on July 29.
Compared with the $51.46 billion recorded at the end of June, the country’s foreign reserves have increased by about $463 million over the past month.
The latest position also represents a significant improvement from late June, when reserves rose steadily from $51.14 billion on June 22 to $51.46 billion by month-end.
The recent improvement in Nigeria’s foreign reserves has been supported by stronger foreign exchange inflows, improved crude oil earnings, higher diaspora remittances and renewed investor confidence following the Central Bank’s monetary and foreign exchange reforms.
External reserves gained approximately $1.22 billion in May before increasing by nearly $1.90 billion between the end of May and the end of June.
The balance also climbed consistently through July, rising from $51.53 billion on July 3 to $51.58 billion on July 6, $51.64 billion on July 7 and $51.71 billion on July 8 before eventually crossing the $52 billion mark.
Analysts note that fluctuations in external reserves are common and often reflect the CBN’s foreign exchange interventions, external debt servicing obligations, import payments and other international financial commitments.
Although reserves have moderated from their recent peak, they remain at their highest level since January 2009, providing a stronger buffer against external shocks and enhancing Nigeria’s ability to meet its international payment obligations.
The improved reserve position is also expected to support confidence in the foreign exchange market as authorities continue efforts to strengthen external liquidity.
