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Muna Tengi
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Yemi Cardoso Discloses Nigeria’S External Reserve Amount
According to Infinity Media, Mr. Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), announced that as of July 16, 2024, the nation's foreign reserve has grown to $36.89 billion.
According to what this Nigerian news outlet is aware of, Mr. Olayemi Cardoso, the governor of the CBN, said this on Friday in Abuja during a meeting with the Senate Committee on Banking, Insurance, and Other Financial Institutions. He stated that the country's economy has grown and become more stable as a result of the CBN's monetary policies and operations.
By the end of June, he claimed, the country's foreign reserves will be sufficient to cover more than 11 months' worth of imports of commodities and services, or 14 months' worth of only products.
According to Cardoso, this shows a solid buffer against outside shocks because it is much higher than the global standard of 3.0 months.
Along with it, he mentioned how strong and varied the banking industry still is, with 26 commercial banks, 6 merchant banks, and 4 non-interest banks.
The official and BDC rate differential has shrunk dramatically from N162.62 in January to N47.22 in June, he added, showing successful price discovery, improved market efficiency, and fewer chances for arbitrage.
"The stock of external reserves increased to 36.89 billion dollars as of July 16 from 33.22 billion dollars as of the end of December 2023, mostly due to receipts from third-party receipts and taxes related to crude oil." We observed improvements and kept a current account surplus in the first quarter of 2024.
Cardoso mentioned that while the CBN was encouraged by positive trends, it remained vigilant and committed to implementing policies that support sustainable growth in the financial markets and maintain overall economic stability.
Efforts to combat economic challenges
He assured committee members that the necessary measures and strategies had been mapped out to address emerging challenges.
To combat inflation, the CBN implemented a comprehensive set of monetary policy measures, which included raising the policy rate by 750 basis points to 26.25 percent, increasing cash reserve ratios, normalizing open market operations as the primary liquidity management tool, and adopting inflation targeting as the new monetary policy framework.
In the area of banking supervision, Cardoso highlighted that the CBN had taken decisive actions to ensure the safety, soundness, and resilience of the banking industry. Key measures included intervention in three banks, revocation of Heritage Bank’s license, increasing minimum capital requirements, and enhancing AML/CFT supervision.
He emphasized that the CBN planned to recapitalize deposit money banks in Nigeria to improve capital adequacy and their capacity to grow the economy. The ultimate goal, according to Cardoso, was to create a more stable, resilient, and efficient financial system that better serves the Nigerian economy while adhering to international best practices.
Meanwhile, Infinity Media reports that despite the claims of the CBN Governor, that external reserves have risen to $36.89 billion, checks on the CBN’s external foreign reserve portal reveal that the external reserve as of July 16 quoted by the Governor Cardoso stood at $35.77 billion and rose to $35.93 billion on the 17th of July 2024.
Infinity Media earlier reported that the country’s foreign reserve had exceeded $35 billion, the first time under the administration of President Bola Tinubu.
