Nigeria’s foreign reserves rise to $33bn

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Further evidence of the improving economy emerged yesterday as the Central Bank of Nigeria (CBN) yesterday revealed that the country’s external reserves have surged to $33billion.
The Acting Director Corporate Communications Department, CBN, Mr. Isaac Okorafor, disclosed this at the ongoing 24th CBN seminar for Business Editors and Finance Correspondents in Awka.

The development means that Nigeria’s dollar buffers now stand at almost a three year high as the banking watchdog data shows that the reserves stood at $34.47 billion as at December 31, 2014.

Battered by lower oil prices, the foreign reserves had gone down as low as $24billion last year but for some months now, they have been hovering around $30billion.
Interestingly, the reserves have steadily risen in recent months amid regular interventions by the apex bank in the foreign exchange market.

Although the CBN has not provided a reason for the increase in the reserves, industry analysts have largely attributed it to the recovery in oil prices occasioned by the production cut deal reached by the Organisation of Petroleum Exporting Countries (OPEC) last November.

In addition, analysts also point out that Nigerian asset, largely shunned by foreign investors over the past three years, have attracted significant amounts of capital after the CBN last April liberalised the exchange rate for investors, establishing a forex window for Investors and Exporters that has so far attracted $4billion worth of transactions.

At the last Monetary Policy Committee (MPC) meeting, the CBN governor, Mr. Godwin Emefiele, said the total foreign exchange inflows through the apex bank increased by 35.41 per cent in June 2017 compared with the previous month.

Source: New Telegraph

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