Nigeria’s external reserves increased to $39.07bn in September – CBN --[Reported by Umva mag]

The Central Bank of Nigeria (CBN) says that Nigeria’s external reserve stood at US$39.07 billion as at 19th September 2024, representing an increase of 17.4 per cent compared with US$33.28 billion in the corresponding period of 2023.

The Governor of the CBN, Mr. Olayemi Cardoso, said in a statement after the two-day Monetary Policy Committee (MPC) meeting on Tuesday, September 24, 2024 in Abuja that the figure represented eight months of import cover for goods and services and 13 months of imports of goods only.

According to the statement, Nigeria’s Real GDP (year-on-year) grew by 3.19 per cent in the second quarter of 2024, compared with 2.98 per cent in the first quarter and that it was driven by both the oil and non-oil sectors.

It explained that the MPC members also assessed the performance of key financial soundness indicators and noted with satisfaction that despite familiar headwinds, the banking industry remains safe, sound, and stable.

The Committee, however, emphasized the need to sustain supervisory oversight on the industry to strengthen its continued support to the economy.

It also stated that global growth projection by the IMF remains at 3.2 per cent in 2024 and 3.3 per cent in 2025. Some of the downside risks to this projection remain geo-economic fragmentation, elevated global debt and ongoing geopolitical tensions between Russia and Ukraine as well as Israel and neighboring countries.

On food inflation, the committee noted that the upside risks remained flooding, hike in energy prices, scarcity of petrol and most importantly, insecurity in farming communities and commended the efforts of the federal government in addressing insecurity in farming communities, especially considering the weight of food in the Consumer Price Index (CPI) basket.

Following these considerations, Members deliberated on the optimal policy option to sustain the downward trend in price development, contain emerging risks to inflation, stabilize the exchange rate and safeguard the banking system while also shielding the recovery of output growth.

In addition, the MPC members noted that the real policy rate remains negative even after the recent moderation in headline inflation, thus, to attract investments into the economy, efforts must be sustained to achieve a positive real interest rate.

The MPC applauded the ongoing effort of the Nigerian government to bridge the food supply deficit through the duty-free import window for food commodities.

“The Committee also expressed optimism that the lifting of refined petroleum products from Dangote Refinery will moderate transportation costs and significantly support the easing of food price pressures in the short to medium term.

This is also expected to moderate foreign exchange demand for importation of refined petroleum products, with a positive spillover on external reserve and improvement in the overall balance of payment position,” it said.

GIK/APA

The following news has been carefully analyzed, curated, and compiled by Umva Mag from a diverse range of people, sources, and reputable platforms. Our editorial team strives to ensure the accuracy and reliability of the information we provide. By combining insights from multiple perspectives, we aim to offer a well-rounded and comprehensive understanding of the events and stories that shape our world. Umva Mag values transparency, accountability, and journalistic integrity, ensuring that each piece of content is delivered with the utmost professionalism.