Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), announced on Tuesday that the country’s foreign reserves have increased by 12.74%, reaching $39.12 billion as of October 11, 2024.

Speaking before the House of Representatives Committee on Banking Regulation in Abuja, Cardoso attributed this growth to foreign capital inflows, crude oil-related tax receipts, and remittance flows, which now account for 9.4% of total external reserves.

He emphasized that the current reserves can finance over 12 months of imports for goods and services, exceeding the international benchmark of 30 months, thus providing a robust buffer against external shocks.

Cardoso also discussed recent reforms in the foreign exchange market, including a unification strategy that streamlines exchange rate windows into a single model based on a "willing buyer, willing seller" approach.

Despite these positive developments, Cardoso acknowledged ongoing concerns regarding inflation. The latest data from the National Bureau of Statistics indicates that the consumer price index rose to 32.7% in September, marking an increase after two months of decline.

He noted signs of "gradual moderation" in inflation rates and expressed optimism for continued improvement in the final quarter of 2024 due to effective monetary policy measures and government initiatives.

To combat inflation, the CBN has reverted to an orthodox monetary policy approach, raising the policy rate by 850 basis points to 27.25% and implementing other measures aimed at stabilizing prices and optimizing liquidity management.

Cardoso highlighted that these strategies are part of a broader framework designed to ensure effective monetary policy over the next several years.