Nigeria’s FX Reserves Climb to $48.5bn, Highest Level Since 2013

Nigeria’s FX Reserves Climb to $48.5bn, Highest Level Since 2013

Nigeria’s foreign exchange (FX) reserves have risen to $48.5 billion, marking the highest level recorded in approximately 13 years.

Data obtained from the Central Bank of Nigeria (CBN) showed that reserves stood at $48.5 billion on Tuesday, surpassing Monday’s figure of $48.36 billion. The latest level represents the strongest reserve position since May 14, 2013, when the country’s external reserves were about $48.51 billion.

The development signals a steady build-up in Nigeria’s external buffers amid recent improvements in foreign exchange inflows and monetary tightening measures.

What FX Reserves Represent

According to the apex bank, foreign exchange reserves are assets held by a country’s monetary authority in foreign currencies. These assets are used to:

Back external liabilities

Support the value of the local currency

Fund balance-of-payments needs

Strengthen investor confidence

Influence monetary and exchange rate policy

Economists note that a higher reserve level enhances a country’s ability to defend its currency against external shocks and manage exchange rate volatility.

Implications for the Economy

The rise in reserves comes at a time when the naira has shown signs of relative stability in the official foreign exchange market. Analysts say sustained reserve growth could further support liquidity in the FX market and improve Nigeria’s credit outlook.

However, market observers caution that the durability of the gains will depend on consistent FX inflows, oil revenue performance, foreign investment trends, and prudent monetary management.

For policymakers, the milestone underscores the importance of maintaining macroeconomic stability to preserve the country’s external position in the months ahead.