CBN Increases Foreign Reserves to $3.5bn with Gold

The Central Bank of Nigeria (CBN), under Governor Olayemi Cardoso, has successfully boosted its foreign reserves to $3.5 billion by acquiring indigenous gold. This acquisition aligns with the CBN's ongoing strategy to diversify its reserves portfolio and enhance financial stability.

The gold was sourced from local miners adhering to the London Bullion Market Association's (LBMA) good delivery standards. The CBN's initiative is part of the National Gold Purchase Programme (NGPP), which aims to engage local miners and ensure compliance with international guidelines.

Cardoso emphasized the importance of this shift in reserve management amidst global economic uncertainties. The CBN's approach includes purchasing gold at naira prices linked to LBMA benchmarks, thus preserving Nigeria's foreign exchange holdings.

The workshop convened by the CBN highlighted the need for a structured platform to engage key players in the gold sector and adapt to evolving economic realities. Hajiya Fatima Umaru Shinkafi and Kurtulu Taskal Diamondopoulo commended the CBN's efforts in establishing a formal supply chain and adhering to international standards.