…As Naira Strengthens In FX Market
The latest data from the Central Bank of Nigeria (CBN) on the nation’s external reserves position indicated that accruals into the account surged to $54.08bn as of 3rd September this year, thereby strengthening the country’s foreign exchange (FX) buffer against global shocks and further strengthening the Naira.
The apex bank’s data showed that the reserves current level was the highest since December 2008, when Nigeria’s reserves stood at about $54.21bn.
An analysis of the reserves trend over the past few months showed that the reserves rose from $53.11bn on 24 August to $53.30bn on 26 August, $53.51bn on 28 August and $53.81bn by 31 August and further increased to $53.90bn on 1 September, $53.99bn on 2 September before hitting the $54bn mark on 3rd September.
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According to the data, the latest reserves value is about $3.04bn higher than the CBN’s full-year projection of $51.04bn.
Similarly, as of the date under review, the liquid reserves totalled at $53.55bn, indicating that the bulk of Nigeria’s external reserves is readily available for conversion into cash and use in meeting foreign-exchange and external payment needs.
As expected, the boost in the external reserves has complemented the liquidity in the FX market with the attendant implications for the Naira exchange rate, which strengthened to N1,315/$1.
Commenting recently on the improving external reserves position, the CBN Governor, Olayemi Cardoso, attributed it to improved foreign exchange inflows, including receipts from crude oil-related taxes and third-party inflows.
