Nigeria’s external reserves have increased again, reaching $39.07 billion as of September 19, 2024.
Gatekeepers News reports that Governor of Central Bank of Nigeria (CBN), Yemi Cardoso revealed this during a press briefing at the end of 297th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday.
A communique released after the MPC briefing read: “The external reserve stood at US$39.07 billion as at 19th September 2024 an increase of 17.4 per cent compared with US$33.28 billion in the corresponding period of 2023. This represents 8 months of import cover for goods and services and 13 months of imports of goods only.”
Also, CBN revealed that there is a correlation between monthly disbursement from Federation Account Allocation Committee (FAAC) and liquidity in banking system, adding that it impacts the exchange rates.
Cardoso noted that going forward the apex bank will monitor future disbursement by FAAC to determine its impact on prices.
He said, “The MPC noted the continued growth in money supply recognising the need to curtail excess liquidity in the system as well as address foreign exchange demand pressures.”
“Members were also concerned about the growing level of fiscal deficit but acknowledged the efforts of the fiscal authorities not to resort to Ways and Means financing.”
“Furthermore, members observed a strong correlation between FAAC releases and liquidity levels in the banking system as well as it impacts on the exchange rates.”
“The committee therefore agreed to increase monitoring of future releases with a view to addressing its effects on price development.”
