External reserves rise by 0.39% in 2024 on Afreximbank loan

Nigeria’s external reserves have risen by 0.39 percent or $0.13 billion in 2024, following the inflow of $2. 25 billion from African Import-Export Bank (Afreximbank).

Data from the Central Bank of Nigeria (CBN) showed that foreign currency reserves rose to $33.042 billion as of January 3, 2024 compared to $32.912 billion recorded on Friday, the last trading day of 2023.

This was the same day Nigeria received part of the $3.3 billion Afreximbank loan, which has helped to boost reserves.

“This Afreximbank fund is going to help to stabilise the market further. Once the CBN can clear the backlog substantially, subsequent inflows will now be used to intervene directly in the market after the backlog has been cleared,” said Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise.

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Naira recorded the first gain against the US currency in 2024 despite the low dollar supply in the official foreign exchange (FX) market on Thursday.

At the end of trading on Thursday, naira appreciated by 15.62 percent as the dollar was quoted at the rate of N895.23, stronger than N1,035.12 quoted on Wednesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

On Thursday, willing buyers and willing sellers quoted the dollar at N1,268 (high), which was weaker than the previous day’s quote on the spot trading. They first quoted the dollar at N701 (low), marginally weaker than N700 quoted on Wednesday, data from the FMDQ indicated.

The FX market recorded low dollar supply as the daily foreign exchange market turnover declined by 20.06 percent to $68.49 million on Thursday from $85.68 million recorded on Wednesday.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.