Nigeria’s external reserves has gained $801 million in the last 12 days despite Central Bank of Nigeria (CBN) increased intervention in the foreign exchange market where millions of dollars are spent weekly ostensibly to support the naira.
Tribune reports that after recent depletion of the reserves on the heels of drop in global oil prices and attendant decline in foreign earnings accretion, the external reserves rose by 1.89 per cent to $43.13 billion from $42.33 billion between December 3 and December 19, 2018.
The nation’s external reserves as at the first week of January this year was at $38.76 billion but closed at $40.69 billion end of January, and hit $42.49 billion end of February.
By end of the first quarter of 2018, the external exchange buffer had gained $7.49 billion after crossing the $46 billion mark to $46.26 billion on March 29, 2018.
READ ALSO: Oshiomhole may be a traitor working against Buhari's re-election - APC youths
Rising in April by $986 million or 2.1 per cent to $47.49 from $46.51 billion, the upswing was however punctuated in May when it hovered between $47.7 billion and $47.6 billion. It turned flat at $47 billion in June.
By end of half year 2018, however, the reserves had added $9 billion from $38.7 billion it opened this year to $47.8 billion as at June 29, 2018.
But depreciation set in on the back of falling oil prices, repatriation of funds by the foreign portfolio investors (FPIs), and sustained intervention in the foreign exchange market by the CBN to defend the local currency from further loss in value against the Dollar.
PAY ATTENTION: Read the news on Nigeria’s #1 news app
Consequently, the value of the reserves depreciated by $6.04 between June and November 8, 2018 when it closed at $41.75 billion. In July and August, the external reserves closed lower at $47.12 billion and $45.84 billion respectively.
Some FPIs in the fixed income market did not roll over their matured investment while others in the equity market sold down their shares ahead of 2019 elections amid political uncertainty.
Legit.ng earlier reported that the Central Bank of Nigeria (CBN) in its report titled Economic Report October 2018, on Monday, December 3, revealed that the federal government’s collected revenue fell by 38.4% in October, and it recorded a deficit of N66.51 billion within same period.
Nigeria's apex bank revealed that the federally-collected revenue (gross) was estimated at N682.06bn in October 2018. This was below the monthly budget estimate and receipts in the preceding month by 38.4 per cent and 18.0 per cent, respectively."
NAIJ.com (naija.ng) -> Legit.ng We have upgraded to serve you better.
EXCLUSIVE: Be patient with President Buhari, Femi Adesina tells Nigerians | Legit TV
Source: Legit.ng
