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Nigeria’s external reserve on the rise again, but …

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The Central Bank of Nigeria (CBN) has revealed that after months of drop, Nigeria’s external reserve has recorded three consecutive days of increase.

CBN stated this in its latest foreign reserves data on its website.

The latest figure which is on Thursday June 9 shows the reserves currently stand at $38.51 billion, an increase from $38.4 billion the previous day.

On Tuesday, June 7 the reserve increased for the first time in days to $38.4 billion.

In the last few months, CBN has been struggling to add more dollars to the reserves which were expected given the high oil prices.

When discussing reserves analysts believe that an increase in oil prices should lead to an increase in foreign exchange earnings and more dollars on the reserves, however, this has not been the case.

Read also: Naira appreciates as Nigeria’s external reserves record first increase in 14 days

In November last year, CBN governor, Godwin Emefiele during the France-Nigeria Security and Economic Summit in Paris, France promised that Nigeria’s foreign reserves would surpass $42 billion by the middle of this year.

He made the promise when the foreign reserve was at a high of $41 billion noting that it will cross the $42 billion mark by mid-2022.

Mid-2022 is here, external reserves have dropped far behind the figure it was in November 2021 despite high oil prices.

In fact, from November 30, 2021, when gross external reserves were at $41.19 billion to $38.52 billion as of June 9, the reserves have dropped by 6.48 per cent or $2.67 billion.

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