Nigeria’s external reserve hit a new milestone in June, rising to $34.07 billion, the highest level since March 2024.

This information comes from the Central Bank’s external reserve position as of June 26, 2024. Nairametrics reported last week that the external reserve reached a three-month high when it rose to $33.5 billion.

Reserves have continued to surge since then, topping $34 billion for the first time since March 21, when it was $34.2 billion. The external reserves have now swelled by a substantial $1.3 billion since June.

However, the main drivers of the growth in reserves remain unclear.

What this means

The rise in FX reserves comes after three months of noticeable fluctuations when it plunged to a low of $32.11 billion on April 19, 2024, sparking concerns about the nation’s financial stability.

Recall, in April the central bank Governor had to address the issue at the last IMF Spring meeting.

However, since then, a gradual and consistent upward trajectory has been observed, coinciding with a period of exchange rate stability. The official exchange rate has averaged N1,481/$1 this month and has depreciated or appreciated within a band of plus or minus 0.06%.

Details later….