Nigeria's Foreign Exchange Reserve on the Rise After $1.8bn Dip

By Abass Ganiyu


Lagos, Nigeria — Nigeria's foreign exchange reserve has shown a promising recovery, increasing steadily over the past six days after a significant $1.8 billion dip. According to the Central Bank of Nigeria, the reserve rose to $32.80 billion on June 6, 2024, up from $32.69 billion on May 31. This increase marks a $110 million rise within a week.

The consistent upward trend is seen as a positive sign for the Nigerian economy, which faced challenges with the reserve's previous decline between March 18 and May 29, 2024. The reserve had dipped by $1.8 billion during that period, raising concerns about Nigeria's financial stability and ability to meet international obligations.

The current growth in the foreign reserve is expected to bolster investor confidence and support economic recovery. The increase follows the Central Bank of Nigeria's fulfillment of a pledge to settle all valid foreign exchange backlogs, a move that had led to the naira rebounding against the U.S. dollar in both official and parallel markets in late March.

This recovery in the foreign reserve is a crucial development for Nigeria, serving as a buffer against economic shocks and ensuring the country can meet its international financial commitments. As the reserve continues to grow, it is anticipated to further stabilize the economy and promote sustained growth.

Comments

Post a Comment

Popular posts from this blog

House of Representatives Ordered NNPC to Suspend Crude-for-Loan Deal

By Abass Ganiyu
Image
By Abass Ganiyu In a decisive move, the House of Representatives has ordered the Nigerian National Petroleum Corporation (NNPC) to suspend its controversial crude-for-loan deal, effective immediately. This directive follows mounting scrutiny and calls for transparency regarding the terms of the agreement and its implications for Nigeria’s oil sector and national finances. The crude-for-loan deal, which involves the exchange of crude oil for loans to finance various infrastructure projects, has faced criticism over its potential impact on Nigeria’s oil revenues and national debt. Critics argue that the deal may compromise Nigeria’s oil assets and expose the country to financial risks. The decision by the House of Representatives comes after a series of debates and hearings on the deal’s terms and its alignment with national interests. Legislators expressed concerns about the lack of transparency and the potential for adverse effects on the country’s financial stability. With...
Read more

Customers besiege banks to reactivate dormant accounts

By Abass Ganiyu
Image
By Joy Adekayero Many bank customers affected by the new Central Bank of Nigeria guidelines on dormant accounts rushed to their various banks on Tuesday to reactivate the accounts. Some of the customers, who spoke to the News Agency of Nigeria in Abuja on Tuesday, said they had to activate their bank accounts to avoid the mopping up of their little savings by CBN. Further inquiries by our correspondent confirmed the situation, with courtrooms also becoming crowded with requests to swear affidavits. A bank official at a first-generation bank informed The PUNCH that numerous customers and families had submitted requests to re-activate inactive accounts so as not to lose the money to the apex bank that intends to use them for investment purposes. The official said, “Yes, we have seen customers coming to the bank to reactivate their accounts. Even relatives and next of kin to dead persons have submitted applications to withdraw amounts left in the account of their loved ones. I...
Read more

EFCC Arraigns TSTV Executives for Tax Evasion and Money Laundering

By Abass Ganiyu
Image
ABUJA – The Economic and Financial Crimes Commission (EFCC) has arraigned the Managing Director and CEO of Telcom Satellites TV (TSTV), Dr. Bright Ikechukwu Echefu, along with the Executive Director, Dr. Felix Nnamdi Ignoanuga, at the Federal High Court in Abuja. They face nine charges, including tax evasion and money laundering. The EFCC accuses the defendants of failing to remit VAT, company income tax, and PAYE from their employees' salaries, diverting substantial funds for personal use. Additionally, they allegedly defrauded Senior Advocate of Nigeria (SAN) Turaki Kabir Tanimu of N960 million under false pretenses. The prosecution's charges highlight several instances where the defendants purportedly redirected significant amounts meant for government taxes to personal accounts. The EFCC claims that the defendants defrauded Turaki of large sums under the guise of securing loans for telecom equipment acquisition. These transactions were detailed with specific amo...
Read more