Central Bank of Nigeria Governor, Olayemi Cardoso, on Friday, assured Nigerians of better days ahead, disclosing that the stock external reserves have increased to US$36.89 billion as of July 16, 2024.
Cardoso stated this while rolling out the growth and economic stability indices during statutory engagement with the Senate Committee on Banking, Insurance and other Financial Institutions.
According to him, “The spread between official and BDC rates has narrowed significantly from N162.62 in January to N47.22 in June 2024, indicating successful price discovery, increased market efficiency, and reduced arbitrage opportunities.”
The apex bank boss assured the committee members that required measures and strategies have been mapped out to confront emerging challenges.
He said, “The stock of external reserves increased to US$36.89 billion as of July 16, 2024, compared with US$33.22 billion at end-December 2023, driven largely by receipts from crude oil related taxes and third-party receipts.
“In Q1 2024, we maintained a current account surplus and saw improvements in our trade balance. Our external reserves level as at end-June 2024 can finance over 11 months of import of goods and services, or 14 months of goods only.
“This is significantly higher than the prescribed international benchmark of 3.0 months, indicating a strong buffer against external shocks.
“The banking sector remains robust and diverse, comprising twenty-six commercial banks, six merchant banks, and four non-interest banks. Key indicators such as capital adequacy, liquidity, and non-performing loan ratios all showed impressive improvements, underscoring the sector’s growing stability and resilience.
“The equity market has shown impressive performance, with the All-Share Index rising by 33.81 per cent and market capitalization expanding by 38.33 per cent from December 2023 to June 2024, reflecting growing investors’ confidence.
“While we are encouraged by these positive trends, the CBN remains vigilant and committed to implementing policies that support sustainable growth in our financial markets, while maintaining overall economic stability.”
Earlier in his opening remarks, the Chairman of the Committee, Senator Adetokunbo Abiru, said the overall purpose of the interaction was “to update the committee on efforts, activities, objectives and plans of the Bank with respect to monetary policy.”
