Nigeria’s external reserve rises by $930m to $36.30bn

Nigeria’s foreign reserve has increased to $36.30 billion as of January 14, the latest figures by the Central Bank of Nigeria (CBN) have revealed.

The new figures rose from about $35.37 billion recorded as of December 31, 2020.

The rise may be attributed to the recent increase in prices of crude oil in the international market, which traded at $55 a barrel last week.

Read also: Nigeria’s external reserves enough to finance 7 months of import commitments –Buhari

According to the latest data, the rise shows a gain of $930 million in 10 days.

A country’s foreign reserve is cash and other reserve assets held by a central bank that is primarily available to balance payments of the country, influence the foreign exchange rate of its currency, and to maintain confidence in financial markets.

The rise recorded in the reserve will help for a stable naira across forex markets, thereby saving the Nigerian economy.

On Friday, Naira remained stable against the dollar at the Investors and Exporters (I&E) window, closing at N394.67/$1.

The reserve and the Nigerian 2020 budget suffered severe pressure since the crash in oil prices due to an array of crises, with the Federal government resorting to borrowing.

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