Smarting from the recent fairly favourable oil prices at the international market and monetary policy proactive measures, Nigeria has overtaken South Africa in net foreign reserves, with the country’s reserves peaking at $47.37 billion as against South Africa’s about $43.12 billion currently.
The accretion in Nigeria’s foreign reserves is attributed to the sundry proactive monetary policy measures by the Central Bank of Nigeria (CBN) that had helped in shoring the nation’s reserves from about $21 billion in the immediate post recession months to $47.37 billion currently.
The South Africa’s Reserve Bank reported that the country’s reserves dropped to $43.115 billion in April from $43.384 billion in March.
The CBN Governor, Godwin Emefiele, gave the insight into the nation’s foreign reserves position at the opening of the 25th seminar for Business Editors and Financial Correspondents in Uyo, Cross River State.
Emefiele, who was represented by the Deputy Governor, Corporate Services, Edward Adamu, projected that the reserves would rise to the $50 billion target earlier set by the apex bank before the end of the year.
According to the apex bank governor, the forward position, which represents the central bank’s unsettled or swap transactions, was lower at $1.933 billion from $1.996 billion in the previous month.
He clarified further: “The decrease of 440 million dollars in the gross reserves reflects the foreign exchange payments made on behalf of the government and the appreciation of the U.S. dollar against most currencies.”