The forex reserves of Africa’s biggest economy were at $44.30 billion on September 28, last year.
The reserves also increased by 4.27 percent month-on-month as the nation forex buffer stood at $42.33 billion on February 26.
Foreign exchange reserves are monies or other assets held by a central bank or other monetary authority so that it can pay if need be, its liabilities.
Analysts said the present level of the country's forex buffer can comfortably fund 14 months import, better than the average three months benchmark for international trade.
On Tuesday the central bank cut its benchmark interest rate for the first time in four years by 50 basis points to 13.5 percent to try to stimulate growth.
Nigeria’s naira has the potential to appreciate in the wake of the rate cut, given the performance of crude oil price in recent time, the sustained interest of offshore investors in local debt and buoyant foreign exchange reserve.
Analysts said with the level of forex buffer, the CBN has the capacity to defend the local currency should the need arise to do so.
Experience of Egypt remains a benchmark that Nigeria could take a cue from. The Egypt central bank cut its main interest rates earlier this year, and this was followed by gains in the value of the country's currency.
Like Egypt, Nigeria’s debt yields remain attractive. The CBN has kept interest rates high for the past six months or so using short-term instruments known as open-market operations to rein in liquidity. Average yields on naira bonds of 14.4 percent are the fourth-highest among large emerging markets, making the local market attractive to foreign investors.
The naira is trading at 360 to the dollar on the parallel market, 360.80 to the dollar at the investors' window and 306.95 to the dollar on the central bank market.
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