Green Shoots Start to Sprout as External Reserves Hit $26.1bn

The accretion of Nigeria’s foreign exchange (forex) reserves, which started about two months ago, continued in the new year, when figures released yesterday by the Central Bank of Nigeria (CBN) showed that reserves had grown to $26.094 billion, signifying a slow but steady improvement in the country’s current account balance.

It was also indicative that the drop in militancy in the Niger Delta and rising oil exports, have led to an improvement in foreign exchanges earnings, which the CBN has been stashing away, notwithstanding the lingering forex scarcity in the economy.

The present value of the reserves, derived mostly from the proceeds of crude oil sale, represents an appreciation by $2.137 billion or nine per cent, compared with $23.957 billion as of November 2, 2016, data gathered by THISDAY showed yesterday.

A CBN source, who spoke with THISDAY on the condition of anonymity, said the increase in the level of exports as well as the drop in imports in the country following renewed import-substitution drive by the central bank and federal government could be responsible for the appreciation of the external reserves.

Thisday, January 6, 2017

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