₦airaland Forum

Nigeria’s foreign exchange (FX) reserves rose by $621.2 million in 10 days following the successful sale of a domestic dollar bond.

The gross FX reserves increased from $36.24 billion on September 2, 2024, to $36.87 billion by September 12, 2024.

This is according to the latest data on the reserves from the Central Bank of Nigeria (CBN).

This growth reflects the positive impact of domestic dollar bond at boosting the nation’s reserves.

What the data says
On September 2, 2024, the country’s reserves stood at $36.24 billion. Over the course of the following 10 days, this figure saw steady growth, eventually reaching $36.87 billion by September 12, 2024.

The first notable uptick occurred between September 2 and September 3, 2024, when the reserves rose from $36.24 billion to $36.27 billion, reflecting a modest increase of approximately $30 million.

This growth continued over the next few days, with the reserves standing at $36.30 billion by September 4 and reaching $36.33 billion on September 5. These incremental gains suggest a sustained flow of foreign exchange into the country.

By September 6, 2024, the reserves had risen to $36.39 billion, marking a more significant increase as the CBN’s bond strategy gained traction. The rise between September 6 and September 9, when reserves hit $36.64 billion, reflects a particularly strong phase of accumulation. This $250 million growth over a weekend suggests robust demand for Nigeria’s dollar bond and reflects increased liquidity entering the financial system.

The trend continued into the second week of September, with reserves reaching $36.73 billion on September 10, before climbing further to $36.81 billion on September 11. The largest single-day increase occurred between September 11 and September 12, 2024, with reserves jumping by $54.4 million, culminating in the final figure of $36.87 billion.

What you should know
Nairametrics earlier reported that Nigeria’s FX reserves have dipped by about $505.68 million (1.37%) in August 2024.

The dip represents the steepest monthly decline in Nigeria’s forex reserves since April 2024.

However, this increase can be attributed to Nigeria’s recent domestic bond issuance, which was aimed at attracting foreign capital and improving reserve levels. The rise in reserves comes at a critical time for Nigeria, which has been grappling with economic pressures, including the need to support the naira amidst global currency fluctuations.

Nigeria successfully launched its first-ever domestic dollar-denominated bond, seeing over $900 million in subscriptions.

The $500 million bond, coordinated by the Africa Finance Corporation (AFC), marks a pivotal moment in Nigeria’s economic development and highlights the growing confidence in the country’s capital market.

The five-year bond, which was issued at par with a 9.75% annual coupon, witnessed a 180% subscription.

This overwhelming interest from investors highlights the strong domestic confidence in Nigeria’s economic growth prospects, as well as the strategic role of the AFC in deepening the domestic capital markets.

According to a statement from the AFC, investors for this bond issuance ranged from local Nigerians and non-Nigerians residing in the country to Nigerians in the Diaspora and major institutional investors.

The bond will be available for trading on the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange Limited (FMDQ Exchange), providing a significant boost to the liquidity of Nigeria’s financial markets.

helinues:
Very good

Totori news. Anyone who is bitter about this is definitely a witch

SadiqBabaSani:
this one soon you will be a wailer, power is transient

Biodun556:
Nairametrics - BREAKING: Nigeria’s FX reserves rise by $621.2 million in 10 days after domestic dollar bond sale
https://www.facebook.com/100064859073293/posts/942929257879035/?mibextid=rS40aB7S9Ucbxw6v[b][/b]

helinues:
Are you bitter about this news? If no what's the foaming im the mouth for?

Blazetrailer:
If you have any atom of education in you, you would realise that the news of foreign reserves increasing is meaningless in a supposed "floated" currency economy.

Its a measure of how much imports your foreing trade can support before running out. Ot is also a potent asset for seizure if the country fails to pay her creditors.

It can only be a good news if it is used to back the naira. As it is, it has no effect in the value of naira and very useless now

So, what are you excited about? What is the "good" in the news?

helinues:
Would you have wrote this nonsense if the news was about FX declining.

Only a witch would be sad about the development of his own country

Max24:
People who just built the first bus stop in 33years will not like this news !

Goodvibes007:
This kain news no dey trend because it's not a negative one.

oluayebenz:
That's a good news right there....

Thou it's expected, no more fuel importation..

Dollar will likely be exchange around 1,000 in the coming weeks

helinues:
Very good

Totori news. Anyone who is bitter about this is definitely a witch

Blazetrailer:
To start with, you should have used "written" instead of "wrote" in your first sentence, which gives credence to my initial assertion that you are not educated well enough

Secondly, I thought i was simple and basic enough to explain to you why this is not a positive news. I went so low in the explanation,hoping you will understand the primary school level example, given the brazen ignorance you have displayed on numerous topics here.

If you still did not get it after reading all i wrote, then, apologies for assuming you could even comprehend the basics.

Please go your way. I am done engaging someone so daft. My bad!!

helinues:
Thanks for the corrections.

Back to the topic.

Would you have written this epistle had the FX was declining? What was your reactions when the FX was declining?

How come it's only bad news some of you guys don't see as fake or propaganda but any development news like this must definitely be propaganda..

Is it that the development of Nigeria is a threat to some of you most especially you the Emeritus?

Blazetrailer:
What is the development in FR that rose but the exchange rate is getting worse??

Use your brain. One is more important while the other is useless to the economy.

I'm done. Dont have time for nonsense!

Max24:
People who just built the first bus stop in 33years will not like this news !

Max24:
People who just built the first bus stop in 33years will not like this news !