CBN’s gold reserves acquire over N1 trillion in 2024 as costs hit report ranges

This was disclosed within the apex financial institution’s audited monetary assertion for the 2024 monetary yr.

Though the amount of gold holdings remained unchanged at 687,402 troy ounces, the rise in worth was pushed by a pointy rise in international gold costs.

The CBN valued its gold bullion at a market worth of $2,624.39 per ounce as on the finish of 2024, in comparison with $2,062.98 per ounce within the earlier yr.

The rise in gold reserves mirrors a broader pattern globally, as central banks ramped up gold purchases in 2024 amid issues over inflation, forex volatility, and financial uncertainty.

International gold demand helps valuation 

In accordance with the World Gold Council’s Gold Demand Developments report for 2024, international gold demand, together with over-the-counter funding, rose by one per cent to 4,974 tonnes, setting a brand new annual report. Central banks contributed considerably to this demand, buying over 1,000 tonnes for the third consecutive yr.

The report famous that the London Bullion Market Affiliation (LBMA) gold worth averaged $2,386 per ounce in 2024, marking a 23% improve from 2023. Within the fourth quarter alone, the typical worth rose to $2,663 per ounce, contributing to a surge out there worth of central banks’ gold holdings.

The whole worth of worldwide gold demand reached an all-time excessive of $382 billion in 2024, reflecting the mixed affect of upper costs and sustained shopping for throughout completely different sectors.

CBN strengthens reserve portfolio 

The CBN’s audited accounts additionally confirmed that Nigeria’s complete exterior reserves grew to N54.73 trillion on the finish of 2024, up from N29.98 trillion recorded in 2023.

Gold reserves accounted for about 5.1% of the whole exterior reserves, in comparison with about 4.3 per cent within the earlier yr.

The CBN’s elevated reliance on gold indicators a deliberate diversification away from conventional forex reserves, offering a hedge towards greenback volatility and international monetary dangers.

With projections indicating that central banks might proceed to build up gold in 2025, Nigeria’s place seems aligned with a broader international pattern in direction of securing reserve belongings in tangible, inflation-resistant kinds.

What it’s best to know 

As of December 31, 2024, Nigeria’s internet international change reserves stood at $23.11 billion, marking the very best degree recorded in over three years.

This represents a pointy restoration in comparison with $3.99 billion on the finish of 2023, $8.19 billion in 2022, and $14.59 billion in 2021.

• Along with the development in internet reserves, the nation’s gross exterior reserves additionally rose to $40.19 billion by the top of 2024, up from $33.22 billion on the shut of the earlier yr.
• The rise in Nigeria’s reserves has been attributed to a number of key components. One main contributor was the Central Financial institution of Nigeria’s choice to cut back publicity to short-term international change obligations, together with swaps and ahead contracts, which beforehand weighed closely on the web reserve place.
• There was additionally a notable uptick in international change inflows from non-oil sectors, serving to to strengthen the reserve base and cut back reliance on oil earnings.