Nigeria’s external reserves have risen above $55 billion, their highest level in 18 years, Central Bank Governor Olayemi Cardoso has said.
Speaking at the IMF and World Bank annual meetings in Bangkok, Thailand, Cardoso said the reserves provided a stronger buffer against external shocks. He also said formal remittances were approaching $1 billion a month.
The figures formed part of his account of Nigeria’s economic position at the meetings. Cardoso said maintaining price stability and predictable policy would be necessary to attract longer-term investment.
He pointed to September’s headline inflation rate of 14.63 per cent and said the CBN’s medium-term objective remained single-digit inflation. Monetary-policy decisions, he said, would reflect Nigeria’s economic conditions rather than simply follow other central banks.
Cardoso also outlined efforts to deepen financial ties with Asian economies. Punch reported that engagements included the Monetary Authority of Singapore and China’s central bank, the People’s Bank of China.
Discussions with Chinese central bank governor Pan Gongsheng covered cross-border payments, settlement systems, financial technology and trade finance, according to Cardoso. He said Nigeria intended to build on those discussions during an upcoming visit to Beijing to facilitate payments and support trade and investment.
The governor said closer collaboration with development finance institutions, including the Africa Finance Corporation, could help channel financial stability into funding for productive sectors.
Cardoso’s latest remittance comments follow the CBN’s earlier report of $947 million in formal inflows in July, covered here.
Sources: Punch, Vanguard
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