By Oluwakemi Ikotun
Nigeria’s foreign currency reserves have reached an all-time high, exceeding $34.7 billion, according to the Central Bank of Nigeria (CBN).
The figure saw a significant rise of $110 million compared to the previous day’s amount of $34.5 billion. Since July 1, the total increase has reached $316 million.
Nigeria’s economy is experiencing growth, fueled by a combination of factors. Rising oil prices, increased remittances from Nigerians living abroad, and the Central Bank of Nigeria’s efforts to strengthen the currency are all contributing to this positive trend.
This economic improvement has been acknowledged by Fitch Ratings, who have upgraded their outlook on Nigeria to “positive”. This decision is based on the country’s successful implementation of reforms that have stabilized its economy and improved the effectiveness and reliability of its economic policies.
The Central Bank of Nigeria (CBN) has successfully implemented measures to attract foreign investment. Initiatives like the Investors’ and Exporters’ window have resulted in increased foreign reserves and a surge in foreign portfolio investment.
Despite ongoing challenges like inflation and currency fluctuations, Fitch Ratings anticipates the CBN to continue tightening monetary policy to stabilize the economy. This strategy will contribute to stronger transmission of monetary policy, improving the effectiveness of these measures in managing economic conditions.