Nigeria’s foreign exchange reserves have surged to a new peak of $34.7bn, as per data from the Central Bank of Nigeria’s website on Sunday. This marks an increase of $110m from the previous day’s tally of $34.5bn.

The recent growth in reserves can be attributed to various factors, including the rise in oil prices, improved diaspora remittances, and the Central Bank’s initiatives to stabilise the currency.

According to experts, the increase in foreign exchange reserves is a good development for the country’s economy, as It serves as a cushion against external shocks and strengthens Nigeria’s ability to meet its financial obligations.

While noting that inflation and foreign exchange volatility challenges remain, a recent Fitch Ratings has upgraded Nigeria’s economic outlook to positive, hinged on significant reforms that have restored macroeconomic stability and enhanced policy credibility.

The various measures the Central Bank has implemented have led to a return of sizeable inflows to the official foreign exchange market and a huge rise in foreign portfolio investment inflows.

“The reforms have contributed to the restoration of macroeconomic stability and enhanced policy coherence and credibility.

“However, we see significant short-term challenges, notably high inflation, and the FX market has yet to stabilize, and the durability of the commitment to reform is to be tested,” Fitch stated.