Despite challenges, Nigeria’s foreign reserves hit $42.8bn

*Naira stables at interbank, other forex segments

In spite of the challenges confronting the Nigeria’s economy, the managers of the economy have proved ‘negative economic analysts’ wrong as the nation’s foreign reserves has been on the increase since 2017, hitting $42.8billion in February, 2018.

Since June 2007, Nigeria’s foreign reserves had been diminishing from $62billion to $28.6billion in May 2015 and further declined from $26.51billion in the second quarter of 2016 to $24.74billion in September of the same year.

But the Central Bank of Nigeria (CBN) on Thursday said that the nation’s external reserves have climbed to $42.8billion as at Tuesday, February 13, 2018.

The CBN Acting Director, Corporate Communications, Mr. Isaac Okorafor, attributed the successes in rising foreign reserves to the decline in usage of foreign exchange to import rice.

This, he said, followed the huge local rice production capacity stemming from the success of the CBN Anchor Burrowers Programme launched in 2015, which increased local rice production by at least 1 million metric tons (MT).

This increase, according to some economic experts, is a clear indication that the economy is on the path of recovery from all sectors and will end the year on a positive development.

The evolution of the foreign exchange market in Nigeria has been influenced by a number of factors such as the changing pattern of international trade, institutional changes in the economy and structural shifts in production.

Meanwhile, the Nigerian currency, Naira, at the close of Thursday’s trading activities, steadied against the US Dollar and other major foreign currencies, at the official inter-bank market, as well at the unofficial market and other forex segments, checks by The Daily Times revealed.

For instance, the Naira, at the Investors and Exporters FX (I&E) window, closed at an appreciable rate of N360.12 to the dollar, compared to Wednesday’s depreciated figure of N360.37 and N360.22 recorded on Tuesday.

The window, had began trading at an improved rate of 360.00 to the dollar against 360.06 recorded on Wednesday, but traded high N361.50 before closing at of N360.12.

The I&E FX segment, as of close Thursday’s trading activities, recorded a total transactions turnover of $169.16 million, the same sold the previous day, however, better than $151.55m declared on Tuesday.

The Daily Times further checks revealed that the Naira at the parallel segment of the forex market remained stable at N363 per dollar for the fourth day running during the week.

Also, at the official Spot market, the Naira settled at closing rate of N305.90 per dollar, the same figure it has been trading since the beginning of the week.

But the BDC operators bought dollar at N360 and sold at N363, while Naira against pound was purchased at N483 and exchanged at N498; Euro was bought at N426 and settled at N441, respectively.

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