Nigeria’s External Reserves Hit $12.5Billion In A Year

CNB

Lagos, Nigeria, February 26, 2018//-Nigeria’s external reserves attained its highest height in four years on Tuesday when it recorded $41.773 billion just as it has gained $12.491 billion or 42.65 per cent in the last one year.

According to data made available on the website of the Central Bank of Nigeria (CBN) on Tuesday February 20, 2018, the nation’s external reserves stood at $29.282 billion on Monday, February 20, 2017.

Year-to-date, Nigeria’s external reserves climbed $3.008 billion or 7.76 per cent up from $38.765 billion on December 29, 2017.

Between December 30 2016 and December 29, 2017, the reserves rose by $9.922 billion or 34.40 per cent from $28.843 billion to $38.765 billion.

The quantum leap in Nigeria’s foreign reserves portfolio has remained a subject of discourse among multilateral organisations like the World Bank and local institutions. While the former have linked the growth to a favourable commodity price in the world market, the Central Bank of Nigeria and some analysts maintain that the policies on foreign exchange management have been a major boost to the growth in external reserves


The World Bank disclosed in its January 2018 Global Economic Prospect report launched in February in Washington DC, that an upward revision to Nigeria’s growth forecast is based on expectation that oil production will continue to recover and that reforms will lift non-oil sector growth.

A report from the Organisation of Petroleum Exporting Countries (OPEC), corroborated the position of the World Bank that Nigeria’s economy growth, which also has impacted its external reserves, is in no way disconnected with an increase in crude oil prices which is particularly favourable to Nigeria.

“Apart from Bonny Light crudes, other Nigeria’s oil grades such as Brass River and Qua Iboe also appreciated in value to sell at $65.32 and $61.22 per barrel respectively on Tuesday, January 2, 2018, at the international market”.

The OPEC basket however, declined to $60.62 a barrel on Wednesday, February 14, 2018 from $61.22 per barrel recorded as at January 2, 2018.

Nigeria’s Central Bank Governor, Godwin Emefiele, had in November last year at a gathering of bankers, economists and key stakeholders in the economy in Lagos predicted that the nation’s foreign reserves which has witnessed a positive growth over the last 12 months, from just over $23 billion in October 2016 to over $33 billion in October 2017, will hit the $40 billion mark in 2018.

Independent.ng 

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