The Central Bank of Nigeria’s (CBN) gross dollar reserves have rebounded to levels last seen in June 2023, about 13-months ago as a return to more orthodox policy helps attract portfolio flows.
Gross dollar reserves of the CBN rose to $35.05 billion on July 8th, a level it last hit on June 2nd 2023, when it was at $35.02 billion, according to data on its website seen by MoneyCentral.
Investors are gradually embracing Nigerian debt markets which while still providing a high return in US dollars, now also give a high return in local currency trades.
The CBN has hiked its monetary policy rate by 750 basis points since February, reaching 26.25 per cent in May, to help support the naira and fight inflation.
Higher rates have helped to bid up naira assets as Capital inflows into Nigeria surged by 198 percent to $3.38 billion in the first quarter (Q1) of 2024, according to the National Bureau of Statistics (NBS). Foreign Portfolio Investment or FPI rose by 219.67 percent year on year in the period.
The CBN in the period cleared all valid foreign exchange backlogs of $7 billion, fulfilling a key pledge of Governor, Olayemi Cardoso.
Cardoso in an interview last month said the central bank would support further measures to build the country’s reserves including a eurobond issue.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
 gross dollar reserves have rebounded to levels last seen in June 2023, about 13-months ago){kind=link}