The Central Bank of Nigeria (CBN) announced that Nigeria’s foreign reserves have exceeded $40 billion, the highest level in 33 months. Governor Olayemi Cardoso attributed this milestone to strategic monetary reforms aimed at stabilizing the economy and fostering growth. Key measures include the recent recalibration of the Monetary Policy Rate (MPR) to 27.25% and an elevated Cash Reserve Ratio (CRR) of 50%, both of which are designed to curb inflation and promote economic resilience.
Governor Cardoso highlighted several initiatives driving this achievement. “Our efforts to streamline the FX market, curb arbitrage opportunities, increase foreign remittances, and integrate digital innovations have strengthened Nigeria’s economic foundation and bolstered investor confidence,” he stated.
In addition to these efforts, the CBN conducted a successful auction of NGN513.43 billion in Treasury Bills, with stop rates of 18.0%, 18.50%, and 23.00%. The auction has prompted a minor uptick in Treasury bill yields to 23.90% in the secondary market, while bond yields have adjusted slightly downward by 10 basis points to 19.40%.
The Money Market opened with a liquidity shortfall of ₦525.49 billion, and as the market adjusted, the Open Buy Back (OBB) and Overnight (OVN) rates closed at 31.95% and 32.48%, respectively. Analysts predict that these rates will remain relatively stable over the coming days.
The Treasury Bills Market displayed tempered trading activity this week. The CBN also announced an Open Market Operations (OMO) auction notice for N300 billion, which attracted significant interest, with 1.447 trillion subscriptions allotted at a stop rate of 24.28%.
The Foreign Bond Market saw activity amid rising Brent crude prices, driven by OPEC’s extended production cut, and expectations of a Fed rate cut, which together led to a 41bps week-on-week yield reduction to 9.13%. Meanwhile, in the currency market, the Naira appreciated by 73bps against the dollar to ₦1678.87/$, signaling cautious optimism in the foreign exchange window.
In the equities sector, the NGX All-Share Index (ASI) rose 32 basis points, closing at 97,236.19, with market capitalization reaching ₦59.08 trillion. Trading was driven by gains in ARADEL, CONOIL, and JOHNHOLT, while MEYER, ABBEYBDS, and ETERNA registered losses.
This economic overview underscores the CBN’s ongoing commitment to fostering a stable and prosperous economic environment. Governor Cardoso expressed confidence in Nigeria’s economic trajectory, adding, “With these reforms, we are building a foundation that will ensure resilience in Nigeria’s economic landscape.”
