Foreign reserves grew only marginally in September –CBN data

Nigeria’s foreign reserves advanced just at the marginal rate of 0.16% or $58.464 million in the one month period between 29^th August and 29^th September, data from the Central Bank of Nigeria (CBN) website on Sunday showed.

The reserves, whose balance stood at $35.665 billion as of 29^th August, edged up to $35.724 billion by 29^th September.

Growth in the reserves was irregular throughout the period with a number of rises and falls in the balance, causing them to decline to $35.67 billion by 1^st September and again climb to $35.81 billion as of 17^th September.

They had expanded by $65 million from $35.59 million on 20^th August to $35.66 million by 27^th August.

Between 29^th July and 19^th August, they shed $278.91 million, crumbling from $35.87 billion to $35.59 billion but began to record increase afterward.

Read also: Foreign reserves gain $141m in 17 days

Nigeria’s international reserves might stay anywhere between $29.9 billion and $34.3 billion by end of December, the CBN said in a report: Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2020/2021.

“Sequel to the COVID-19 pandemic, the viability of the external sector in 2020 is expected to deteriorate, given the present worsening current account balance and depletion of external reserves driven, largely, by decelerating export receipts, particularly oil.

“Specifically, the degree of external reserves accumulation is expected to decelerate, as outflows are expected to outweigh inflows.

“As a result, external reserves are expected to lie between $29.9bn and $34.3bn at end-December 2020 (predicated on current declining oil price between $20 and $40),” it added.

 

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