African nations report rising foreign exchange reserves

Nigeria’s foreign reserves have reached a 18-year high of $54.41 billion. This increase follows significant foreign exchange inflows driven by elevated global oil prices and increased local production. Data from the Central Bank indicates that over 99% of the credit balance remains liquid, providing substantial capacity to meet external payment obligations. Analysts suggest that the operations of the Dangote Refinery have also contributed to the rise by reducing the domestic demand for US dollars to import crude.

In Kenya, foreign exchange reserves rose by approximately $370 million to $15.25 billion, reversing a three-week period of decline. According to the Central Bank of Kenya, this increase brings the country’s import cover to 6.3 months, exceeding the statutory requirement of four months. While the current level is slightly below the record $15.4 billion reached in July, the recovery provides a buffer for external payments and supports stability for the Kenyan shilling.