Data released by the Central Bank of Nigeria (CBN) shows that the gross component of the reserves rose to $34.1 billion at the start of September while the liquid portion resumed the month at $33.84 billion.
It is the first time the reserves would hit $34 billion since June 8, 2021, when the composite figure stood at $34.07 billion.
The figures had dropped to around $33 billion, raising concerns about the country’s ability to fund its rising imports. This recent rise comes a few weeks after the board of governors of the International Monetary Fund (IMF) approved the allocation of $3.35 billion to the country as part of its new $650 billion special drawing rights (SDRs) to member countries.
“This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis.
“The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy. It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis,” Managing Director of IMF, Kristalina Georgieva, had said of the allocation created to assist countries suffering from reserves liquidity crisis.
The rising reserves put the apex bank in a more comfortable position to defend the troubled naira and meet import obligations.
