External reserves rise by 512.4m in one year
The Nigerian external reserves have hit $28.50 billion, representing a significant rise of $512.36 billion in one year, compared to $27.99 billion at this time last year, according to latest data on the Central Bank of Nigeria (CBN) website.
However, the latest update from the apex bank is coming against the backdrop of a steady increase in global crude oil, a factor that had stoked the upswing in reserves in the recent time.
The recent appreciation of the nation’s external reserves to $28.5 billion indicates 1.79 percent year on year, and 9.33 percent while compared to the $25.84billion reserves balance as at the end of 2016.
Since the beginning of the year, the reserves have continued to garner momentum, on Thursday, Feb. 2 the reserves hit $28.28 billion and in few days it increased to $28.5billion, showing an appreciation of $222.28 million.
CBN Governor, Godwin Emefiele, while recently commenting on the rising of the forex reserves, told journalists that Nigeria as a country must guide against reckless depletion of the nation’s reserves.
Emefiele said, “The fact that we have begun to see some accretion to the reserve does not mean we should be reckless.”
“The CBN will continue with the policy of ensuring that forex is made available to those who are importing raw materials and supporting the agricultural sector but not to those who want to engage in less important sectors of the economy”, he noted.
His words: “It is exciting to see this (rise in foreign reserves) happen. We do not run a floating regime, we run a managed float. What that means is that from time to time we will continue to intervene in the market to ensure that the exchange rate does not go beyond our expectations and those interventions would be to moderate the risk as we deem necessary.”
