Why rising external reserves fail to stabilise Naira

Oct. 14, 2024 - Businessday

Despite the rise in reserves, the naira has experienced significant losses. Read also:External reserves hit 22-month high amid naira strugglesThe growth in external reserves, which could equip the CBN to defend the naira, has not been able to stabilise the currency.

Additionally, Nigeria received $2.25 billion in December 2023 as part of a $3.

3 billion forex support facility from Afreximbank, which contributed to a modest increase in reserves. According to CBN data, external reserves inched up by 0.

06 percent in one day, rising from $32.892 billion on December 28, 2023, to $32.

912 billion on December 29, 2023. Yusuf also emphasised that tackling oil theft and boosting crude oil production would improve the nation’s foreign reserves and enhance exchange rate stability.

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