Nigeria’s foreign exchange reserves surged by $591.78m in the month following the government’s $2.2 billion Eurobond auction on December 2, 2024, according to the data from the Central Bank of Nigeria (CBN).
This shows that reserves increased from $40.29bn on December 2 to $40.88bn on January 3, 2025.
The report by Punch newspaper on Wednesday stated that it represents a month-on-month growth of 1.47 per cent and highlights the positive impact of the Eurobond proceeds on the nation’s external reserves.
It added that the growth trajectory of the reserves throughout December reflects steady accumulation, beginning with a modest rise in the first week after the Eurobond auction.
By December 9, the reserves had climbed to $40.376bn, indicating an $84m increase within seven days.
The pace of growth accelerated in mid-December, with reserves jumping from $40.525bn on December 12 to $40.790bn by December 19, a sharp rise of $265m in one week.
By the end of December, the reserves peaked at $40.884bn, with the upward trend sustained into early January.
According to the report, the increase in FX reserves comes at a time when Nigeria is grappling with economic challenges, including a rising fiscal deficit and exchange rate volatility.
The proceeds from the Eurobond auction provided much-needed liquidity, helping the government shore up its reserves while addressing critical financial obligations.
This boost has positioned the country to better manage external payments and stabilise the naira.
GIK/APA