Foreign reserves have gained $3.99bn - CBN
- A recent data from CBN reveals Nigeria’s external reserves has hit $43.2 billion
- The nation's foreign reserves have gained about $3.99 billion this year
- The CBN governor, Godwin Emefiele, said increases in the price and shipment of oil, meant the apex bank could build its reserves to $60 billion
Data obtained from the Central Bank of Nigeria (CBN) on Wednesday, March 7, showed the nation’s external reserves hit $43.2 billion on Tuesday, March 6, The Punch reports.
After commencing this year at $38.77bn, the foreign exchange reserves had recorded a four-year high at $42.76 billion on March 2. This year the foreign reserves have gained about $3.99 billion or 10.3 per cent. In December 2017, the reserves had moved from $38.77 billion to $40.69 billion in January 2018.
The foreign exchange buffer of the CBN has continued to increase recently over steady increase in global oil prices and federal government Eurobond borrowing, among others.
Godwin Emefiele, the CBN governor, had projected that the reserves might hit $60 billion in 2019, if the trend persisted. He said increases in the price and shipment of oil, Nigeria’s biggest foreign-currency earner, and improved investor confidence meant the CBN could build its reserves to $60bn over the next 12 to 18 months.
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“Things are looking up. No one ever thought the price of crude would hit $70 in such a short period of time,” he said during an interview with Bloomberg.
The foreign exchange buffer added $12.9 billion or nearly 50 per cent in 2017 despite the CBN weekly intervention.
The apex bank steady rise in the foreign reserve, from July 7 last year, could be attributable to improved foreign exchange inflow occasioned by increase in global oil price, dollar inflow from foreign portfolio investors facilitated by the Investors and Exporters foreign exchange window introduced by the CBN in April last year.
According to an earlier report by Legit.ng, the International Monetary Fund (IMF) has confirmed that Nigeria is out of recession and applauded the country’s strong recovery in foreign exchange reserves.
Leadership reports that this was contained in a report released on Wednesday, March 7, in Washington DC by its executive board after the conclusion of Article IV Consultation with Nigeria.
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According to the report, the executive director of IMF applauded Nigeria’s implementation the Economic Recovery and Growth Plan.
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Source: Legit.ng
