Nigeria’s foreign exchange (FX) reserves went up by $621.2 million in just 10 days after the country sold a special dollar bond inside the country.
On September 2, 2024, Nigeria had $36.24 billion. By September 12, 2024, this amount grew to $36.87 billion.
This information comes from the Central Bank of Nigeria (CBN).
The rise in reserves shows that selling the domestic dollar bond helped to increase the country’s reserves.
What the numbers show
On September 2, 2024, Nigeria had $36.24 billion in reserves. In the next 10 days, it went up to $36.87 billion. This means the reserves grew steadily.
The first jump was between September 2 and September 3, 2024, when the reserves went from $36.24 billion to $36.27 billion, an increase of about $30 million.
This climb continued, with the reserves rising to $36.30 billion on September 4, and $36.33 billion on September 5. These small increases showed a steady flow of dollars into Nigeria.
By September 6, 2024, the reserves were $36.39 billion, which showed the bond sale was working. The reserves grew fast between September 6 and September 9, reaching $36.64 billion. This $250 million growth over a weekend suggested the bond was popular and more money was coming in.
The trend kept going in the second week of September. The reserves reached $36.73 billion on September 10, then $36.81 billion on September 11. The biggest daily increase was between September 11 and 12, 2024, when reserves went up by $54.4 million, ending at $36.87 billion.
Important things to know
Newslodge earlier noted that Nigeria’s FX reserves dropped by about $505.68 million (1.37%) in August 2024.
This was the biggest drop in a month since April 2024.
But, this new increase in reserves can be linked to Nigeria’s recent domestic bond sale. This sale aimed to bring in foreign money and raise reserve levels. This rise in reserves happened when Nigeria badly needed it, facing economic challenges and needing to support its currency, the naira, during worldwide money changes.
Nigeria launched its first-ever domestic dollar bond, getting over $900 million in interest.
This $500 million bond, managed by the Africa Finance Corporation (AFC), marks a big step for Nigeria and shows more trust in its financial market.
This five-year bond offered a 9.75% annual return and saw 180% subscriptions, meaning it was very popular.
This strong interest from investors shows confidence in Nigeria’s growth and the important role of the AFC in strengthening the domestic markets.
A statement from the AFC said investors included local Nigerians, non-Nigerians living in Nigeria, Nigerians abroad, and major institutional investors.
The bond will be traded on the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange Limited (FMDQ Exchange), adding more flexibility to Nigeria’s financial markets.
