By Gwurld4026 
Breaking Down Nigeria’s $40.08bn FX Reserves Milestone Since 2022
Nigeria’s foreign exchange reserves have reached a significant milestone, surpassing $40 billion for the first time since 2022.
As of October 2024, the reserves stood at $40.2 billion, marking a growth from $38.4 billion in September.
This increase is largely attributed to the government’s decision to stop defending the naira through constant intervention, a practice that previously drained the nation’s reserves.
Instead, the Central Bank of Nigeria (CBN) is allowing market forces to play a greater role in setting the exchange rate, leading to organic growth in the reserves.
The government’s strategy also includes a focus on boosting diaspora remittances and improving export processes, with a target to achieve monthly inflows of $1 billion​.
This policy shift is expected to help stabilize the exchange rate without heavy reliance on central bank interventions.