Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), says Nigeria’s gross foreign exchange (FX) reserves has crossed $55 billion, describing the milestone as the highest in more than 18 years.
Cardoso spoke on Tuesday after the monetary policy committee (MPC) meeting in Abuja.
“..we know that today, and it was mentioned in my communique, that we are in excess of 55 billion US, the highest number in over 18 years,” he said.
The disclosure comes after the reserves hit to $54.8 billion as of September 22, according to recent data from the CBN.
Cardoso attributed the strengthening external position partly to increased diaspora remittances, saying the CBN’s efforts to raise monthly inflows towards $1 billion had yielded results.
“As of July, it was almost there. It was almost at $1 billion,” he said.
The governor said the improved reserve position, alongside improved FX liquidity and exchange-rate stability, has helped to strengthen Nigeria’s resilience.
He said the CBN is confident that remittances would continue to grow, while acknowledging that external shocks could affect the flows.
“We will continue to grow these numbers. It will continue to be important for Nigeria,” Cardoso said.
“But we also accept that it can go up, it can go down.”
The economist said the CBN would continue to engage Nigerians in the diaspora and encourage them to invest in the domestic economy.
“We are not going to relent. And we believe that the future is bright for us to continue to improve on those remittances,” he said.
On September 22, the MPC cut the monetary policy rate by 350 basis points to 23 percent at its 307th meeting, noting that the decision would enhance the effectiveness of monetary policy and support the transition to an inflation targeting framework.
