- The CBN governor, Godwin Emefiele, has spoken on the situation of the nation’s foreign reserves
- Emefiele projected that the reserves might hit $60 billion before the end of 2019
- He, however, said Nigerians should not be surprised if the reserves decline while he described it as a fluctuating figure
The nation’s foreign reserves have declined for the first time in eight months, slipping to $72 million between Thursday, May 10 and Monday, May 14.
According to the latest data from the Central Bank of Nigeria, the reserves, which stood at $39.3 billion at the beginning of the year, has risen by $8.5 billion, The Cable reports.
It was learn that the significant increase in the reserves was largely driven by the rebound in oil prices and production, government’s external borrowing (Eurobonds) and the resumption of foreign capital inflows.
The reserves rose to $31.763bn on September 9, 2017, from $31.745bn on September 8. They fell to $31.748bn on September 7 from $31.825bn on August 31.
The foreign exchange reserves recorded a four-year high at $47bn last month from $38.765bn on December 29, 2017.
The foreign exchange buffer of the CBN has continued to increase recently over the steady increase in global oil prices and federal government’s Eurobond borrowing, among others.
The CBN governor, Godwin Emefiele in Washington said Nigerians should not be surprised if the reserves decline.
Emefiele projected that the reserves might hit $60 billion before the end of 2019, he described the reserves as a fluctuating figure.
According to him, “So tomorrow, if we tell you the reserves have dropped, don’t be surprised. It’s a fluctuating figure.”
Meanwhile, Legit.ng had reported that Nigeria was leading South Africa in net foreign reserves as Nigeria’s reserve hits $47.37 billion (N17 trillion) in March 2018 to beat South Africa which has $43.15 billion.
Nigeria which recently recovered from economic recession with less than $21 billion in foreign reserves has built up its reserves massively over one and half years.
The increase in the country’s foreign reserves is reported to have stabilised its foreign exchange which had gone haywire in the past.
Can 1 Naira ever become 1 US dollar again on the Forex market? - on Legit.ng TV: