External reserves rise to two-year high

For the first time in about 2 years Nigeria’s foreign reserves rose to $31.22 billion on Tuesday, August 8, according to Central Bank of Nigeria, CBN.

The reserves which were battered by the low oil price, crumbling naira value and high foreign exchange demand reached such level in July 2015.

CBN data indicated appreciation in reserves amidst the forex intervention by the Central Bank of Nigeria to the various exchange markets. Recent records show that CBN has injected a cumulative sum of $3.61 billion from February to April 2017.

At the last Monetary Policy Committee Meeting, CBN governor, Godwin Emefiele said the total foreign exchange inflows through CBN increased by 35.41 per cent in June 2017 compared with the previous month.

“Total outflows, on the other hand, decreased by 12.73 percent during the same period, as a result of reduced CBN intervention in the interbank foreign exchange market, which also reduced TSA (dollar) payments balances by 61.4 percent in the period under review. The positive net flows resulted in an improvement of gross external reserves to $30.30 billion at end-June 2017, compared with $29.81billion at end-May 2017.”

Daily Trust

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