Good news as Nigeria's foreign reserve hit $38.2bn first time in 3 years

Good news as Nigeria's foreign reserve hit $38.2bn first time in 3 years

- The Nigerian foreign reserve has hit $38.2 billion in 3 years

- The foreign reserve which stood at $40 billion in October 2014, went down to $23 billion in January 2016

- The Central Bank of Nigeria (CBN) had on Monday, December 4 weakened Naira marginally

The Central Bank of Nigeria (CBN) has disclosed that the nation's foreign reserve has reached $38.2 billion, the first time in nearly three years, Daily Trust reports.

NAIJ.com gathered that the Governor of the Central Bank of Nigeria, Godwin Emefiele made the disclosure at the commissioning of the Blueband margarine production line in Agbara, Ogun state on Tuesday, December 5.

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The foreign reserve which stood at $40 billion in October 2014, went down to $23 billion in January 2016, following a crash in commodity prices at the international market.

NAIJ.com had reported that for the first time on the official interbank market, the Central Bank of Nigeria (CBN) on Monday, December 4, weakened the Naira marginally, selling dollars at N307 each.

The apex bank has sold $500,000 almost on daily basis on the official spot market since creating several exchange rates to alleviate dollar shortages. The currency was going for the rates between N305 and N306 for months before Monday’s move.

Experts have called for the scrabbling of the multiple exchange rate, arguing that it encourages round tripping.

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The Nigerian currency had exchanged at N520 to the dollar at the peak of onslaughts by currency speculators before the CBN stated intervening by injecting foreign exchange in the market.

According to an earlier report by NAIJ.com, the Naira appreciated by 30.3% since February when the Central Bank of Nigeria (CBN) began its aggressive interventions at the foreign exchange market.

Can 1 Naira ever become 1 US dollar again on the Forex market? - on NAIJ.com TV

Source: Naija.ng

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