₦airaland Forum

Nigeria’s foreign reserves hit $40.2 billion in October 2024 from $38.4 billion reported in September.

This was disclosed by Olayemi Cardoso, Central Bank governor, during an investors’ meeting in Washington DC, the United States, on Wednesday.

Also at the meeting was Wale Edun, Nigeria’s minister of Finance and coordinating minister of the Economy, who also said that the country’s gross reserves are building organically due to the government’s decision not to defend the naira as was done in the past.

Edun emphasised the government’s commitment to maintaining transparency in the management of Nigeria’s foreign reserves.

Addressing a key concern about net reserves, Edun reassured investors that the government is committed to providing regular updates on the country’s reserve position. “We always get the net reserves question, and I think what we mentioned is that we are very committed to sharing that number very shortly,” Edun said. “We had given a timeline earlier in the year, and had said that hopefully by the end of this year, we’ll be able to share aggregated reserves, and we are committed to that.”

Edun explained that the decision to allow the market to set the exchange rate for the naira, instead of the Central Bank of Nigeria (CBN) defending it, has led to the organic growth of the gross reserves.

“The gross reserves are being built organically, mainly because we’re just not defending the naira, as used to happen in the past. A billion dollars every month just to defend the naira,” he pointed out, highlighting the high cost of past policies aimed at propping up the currency.

By letting the market play a greater role, Edun said that the government is also working to boost investor confidence and build buffers that would stabilise the economy. “We’re allowing the market as much as possible to set the level for the naira, and we are building the buffers to improve that confidence and ensure that we have enough input cover.”

According to him, the government’s goal is to improve the supply of foreign exchange organically without heavy intervention from the Central Bank. He acknowledged that while the CBN might still intervene in the market from time to time, the ultimate aim is to achieve a stable exchange rate without reliance on the central bank’s interventions.

“We’re trying as much as possible to improve our supply organically, without the central bank having to put in money all the time. And so we’re trying to get to a level where that stability is there without the central bank intervening or the market depending on the central bank.”

Edun also highlighted the positive impact that foreign portfolio investment (FPI) has had on the economy.

“We have had some significant amount of improvements in terms of flows from the relative side, foreign portfolio investment (FPI) have put in a significant amount,” he said.

He noted that the country has seen improved confidence among investors, with many willing to commit more resources to the Nigerian market.

“We’ve seen good response from investors through the FPI. We’ve also seen improved confidence for people who want to put in a lot more resources.

“We’re trying as much as possible to ensure that the market is not dependent on the interventions of the central bank and in terms of the levels of supply,” he said, noting that Nigeria has seen a positive response to Open Market Operations (OMO) auctions conducted after the Monetary Policy Committee’s meetings.

https://www.google.com/amp/s/businessday.ng/uncategorized/article/foreign-reserves-rise-to-40-2bn-in-october-cardoso/%3famp

We don hear

This government must be encouraged to keep this reforms
For me,no Government will come and tell us they want to remove subsidies again
Now we can start having the ideas of how to move our country forward
The days of subsidies are behind us,now we want to see Government work for the people both at the state and federal level

Though a good news, it has to increase in order to satisfy our lenders who like to use foreign reserves growth as a criteria for more loans in tight situations aa ours.

One of the problem with our bad currency is the misplaced focus on CBN as the one responsibl for currency strength. That has led to politicization of economic performance. The man is busy acting as if it is down to good management on his part. A quick look at loan terms will reveal the most recent loans arent due for immediate repayment in the short or medium term. It buys the govt some time to grow reserves while the loans they have taken in forex is being exhausted. This analysis by Cardoso is a wrong way to interpret the data coming out

Government of story telling no action = abysmal failure worse than buhari that was previously adjudged the worst leader in Africa…Tinubu today is holding that shameful record due to incompetence, cluelessness and abysmal failure at leadership which leaves his supporters with no hope in sight for a better Nigeria

This macroeconomics but citizenry believe in microeconomic stability so that we can have foods on our tables

Hmmmm.

Ok

They will borrow tomorrow

Nice one

Hummm.......my only fear is that next government after this will come and spend the whole savings lavishly. 😞.

So was for Obasanjo.....one idiot that drinks ogogoro like water came and spent everything with one frog eye woman from the East. And that useless Bohari finished everything by the time he left office May 2023.

Kudos to this new government, but alas some aalimajiri will come to power next and dip their dirty hands into the billions of USD saved and spend it like a prodigal son.

What do we do now? 🤔

Foreign reserve keep rising yet we keep borrowing

Faiththatworks:
This government must be encouraged to keep this reforms
For me,no Government will come and tell us they want to remove subsidies again
Now we can start having the ideas of how to move our country forward
The days of subsidies are behind us,now we want to see Government work for the people both at the state and federal level

Subsidies are normal. More like social intervention, as done in the UK and other climes. Leaving citizens exposed is a show of lack of empathy from the government. Robbing Peter to pay Paul

[color=#1986BC] Organically means that no more dollars to defend the naira or import fuel...Dangote refinery has taken over the economy..[/color]

Faiththatworks:
This government must be encouraged to keep this reforms
For me,no Government will come and tell us they want to remove subsidies again
Now we can start having the ideas of how to move our country forward
The days of subsidies are behind us,now we want to see Government work for the people both at the state and federal level

The really challenge with Nigerian economy is corrupt, any government policy that does not deal with how to eradicate corruption is only deceiving us

olaiya2007:
Foreign reserve keep rising yet we keep borrowing

99.99% of people gave no clue what foreign reserves are
You are one

Foreign reserves are not government funds
So it has nothing to do with the need to borrow


Foreign reserves are not savings or reserve funds of the government

They are CBN funds

Just like Zenith bank. Or any other bank
Bank reserves are depositor funds not shareholders funds

Who are the CBN depositors? anyone with naira in his possession is a creditor of the CBN
Any foreign investor like airline operators who want to repatriate their money can turn up to the CBN with naira demanding dollars hence the argument about trapped funds
The CBN keeps reserves as a means of settling its liabilities which is what the Naira is

The naira is a CBN debt backed up by reserves

Thunder fire an

Government of destruction.

You destroyed Nigeria

You destroyed Ecowas

You destroyed the Naira

You want to come and destroy Yoruba people too?

Nooooo!

We can't allow that.


😭😭😭😭😭

Story, story, to give confidence to IMF and World Bank so they can be eligible to borrow more.

I think the Finance Ministers that borrow money whose back up investment cannot be seen or inadequate should be brought out to the public and be prosecuted,

CodeTemplarr:
Though a good news, it has to increase in order to satisfy our lenders who like to use foreign reserves growth as a criteria for more loans in tight situations aa ours.

One of the problem with our bad currency is the misplaced focus on CBN as the one responsibl for currency strength. That has led to politicization of economic performance. The man is busy acting as if it is down to good management on his part. A quick look at loan terms will reveal the most recent loans arent due for immediate repayment in the short or medium term. It buys the govt some time to grow reserves while the loans they have taken in forex is being exhausted. This analysis by Cardoso is a wrong way to interpret the data coming out

they are trying to be smart by half.

Note how they did not and will not state the net reserve? It's there in the article that they get the question of net reserves a lot, and that they are still calculating it. Subtractions must be so hard🤣

Last time, na JP Morgan tell us the net reserve 🤣

With the new foreign debts of around $20b, the net reserve is already likely negative.

Kaa4:
Story, story, to give confidence to IMF and World Bank so they can be eligible to borrow more.

I think the Finance Ministers that borrow money whose back up investment cannot be seen or inadequate should be brought out to the public and be prosecuted,

I am sure the IMF are not that gullible

:* Hmm all this incredible stats just to save face yet the reality on ground speaks volume otherwise. Makinde was right southwest made a big mistake supporting tinubu. I pray we have learnt our lessons.

The reserves have always risen with oil price in the past so there's no magic happening here
What is left to be seen is how this translates to something tangible for the citizens

What's the use when people keep going to bed hungry

Too much cho cho and now workings

Lifemanage:
Subsidies are normal. More like social intervention, as done in the UK and other climes. Leaving citizens exposed is a show of lack of empathy from the government. Robbing Peter to pay Paul

Why their Higher dey like x100 of ours ... Eti yawerey se

Lifemanage:
Subsidies are normal. More like social intervention, as done in the UK and other climes. Leaving citizens exposed is a show of lack of empathy from the government. Robbing Peter to pay Paul

Why petrol more expensive in the US than Nigeria, eyin werey

Why dem no sack dis guy

You can’t use a man (Cardoso) that liquidated two banks to revive our economy” - Adams Oshiomhole;

Abeg na statistics we chop

Oga CBN Gov.,

Let us see value to the Naira in real terms, and stop giving us paper figures. Enough of these propaganda. .

Bloody liars....Nigeria is broke ...we don't have any foreign reserve ... JP Morgan audit team have already exposed u guys ...