External Reserves Hit Four-Year High of $40 Billion

External Reserves Hit Four-Year High of  Billion

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Top 10 Most Expensive Universities In Nigeria

For many Nigerians, high-quality higher education is a luxury. There are many private universities who are known not only...
- Advertisement -
- Advertisement -

Nigeria’s external reserves have risen to $40.4 billion, the Central Bank of Nigeria (CBN) revealed Monday, making it the first time in exactly four years since the country’s reserves hit the $40 billion mark.

This is just as the CBN injected $210 million into the interbank window of the foreign exchange market.

Figures obtained from the CBN indicated that external reserves reached the $40.4 billion last Friday, indicating an increase of $4.8 billion, compared with $35.6 billion as of December 5, 2017.

CBN Governor, Mr. Godwin Emefiele, towards the end of last month had put the value of the external reserves at $38.2 billion.

Confirming the latest reserves figure, the acting Director in charge of Corporate Communications at the CBN, Isaac Okorafor, attributed the reserves accretion to the Bank’s strategy to effectively manage forex demand by various sectors of the economy.

Citing the CBN policy restricting access to forex from the official forex market by importers of 41 items as the major turning point, Okorafor said the policy had helped to stop the hemorrhaging of the country’s external reserves, which hitherto witnessed heavy depletion due to the huge import bill and other debt obligations.

Read:  Proposed Banking Sector Recapitalization: How prepared are the listed banks?

According to him, the CBN policy had ensured a decline in Nigeria’s import bill from over $5 billion monthly in 2015 to about $1.5 billion in 2017.

He expressed optimism that with the determination of the Bank and the co-operation of the fiscal authorities, the external reserves will continue to grow in the course of 2018.
Emefiele had last November projected that the reserves would grow to $40 billion by the end of 2018. But the target was attained 12 months in advance.

Read:  Fitch raises alarm over weak capital base of Nigerian banks

According to Emefiele, the dogged implementation of the foreign exchange restriction on certain items led to a 65 percent drop in the country’s monthly import bill, from an average of $5.5 billion to $1.9 billion by the first half of 2017.

He also anticipated a return to a low double-digit or high single-digit inflation levels this year.

He, however, cautioned policymakers not to become complacent or over-confident, stressing the need for all hands to remain on deck to improve and sustain the pace of economic recovery.

Read:  Lagos Alone Generates 55% Of Nigeria’s VAT – Adeosun

“For one, our import bill may have fallen but our manufacturing and agriculture sectors still have a long way to go if we must attain self-sufficiency in those sectors.

“We must not be quick to discard the restrictive measures which aided our recovery simply because the metrics have improved,” he said.

He said the central bank would continue to fine-tune its policies and strategies based on its understanding of evolving developments and will be supported by in-house technical analyses and simulations.

Meanwhile, the CBN Monday injected a total of $210 million into the interbank window of the foreign exchange market for requests in the wholesale, Small and Medium Enterprises (SMEs) and Invisibles segments of the market.

A breakdown of the figure indicated that the CBN offered $100 million to the wholesale sector while the small and medium scale enterprises (SMEs) and Invisibles windows each received $55 million.


This Day, Nigeria

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Cornerstone Insurance Announces Results of the Board Meeting held on 20 February 2020

In line with Rule 1.1 of the Rules Relating to Board Meetings and General Meetings of Issuers, Cornerstone Insurance PLC (“The Company”) wishes to...

Seplat Petroleum Development Company Issues Notification of Dealing in Shares by a PDMR

Lagos and London – February 21, 2020: The Company received notification on February 21, 2020, of a transfer of 7,831,534 ordinary shares held by...

Dun & Bradstreet Launches Proprietary Buyer Intent, Increases ROI for B2B Marketing Teams

Early Adopters Realize 37% Increase in Email Open Rates and 20% Increase in Return on Ad Spend February 24, 2020: Dun & Bradstreet, a leading global...

Shoprite Announces Interim Results, Gains Market Share as Store Expansion Continues

Key information Sale of merchandise increased by 7.0% to R81.2 billion. Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 5.3% to R6.8...
%d bloggers like this: