Nigeria’s External Reserves Hits $34.11bn As CBN Clears All FX Backlog

Nigeria’s External Reserves has hit $34.11 billion.

Newsone Nigeria reports that the Central Bank of Nigeria (CBN), announced on Wednesday, March 20, 2024, that it has cleared the $7 billion foreign exchange (FX) backlog inherited by Governor Yemi Cardoso.

According to the CBN, the development fulfills a key pledge on his appointment and signifies a significant step towards restoring confidence in the Nigerian economy.

Hakama Sidi Ali, CBN’s Acting Director of Corporate Communications, made this known in a statement on Wednesday, confirming the settlement of all valid FX backlog claims.

The CBN Acting Director of Corporate Communications said the CBN employed Deloitte Consulting, an independent auditing firm, to meticulously assess the transactions, ensuring that only legitimate claims were honoured.

“Any invalid transactions were referred to the relevant authorities for further investigation,” she said.

The CBN’s commitment to tackling the FX backlog appears to be paying off, with the external reserves seeing a significant rise, reaching $34.11 billion as of March 7, 2024, the highest level in eight months

This month-on-month increase is attributed to a notable rise in remittance payments from Nigerians abroad and increased foreign investment in local assets, including government debt securities.

The apex bank’s actions are noted to be part of a broader strategy outlined during the last Monetary Policy Committee (MPC) meeting.