The nation’s external reserves rose marginally to $33.38 billion in July, thus reversing the decrease it recorded in the two preceding months.
Latest statistical data by the Central Bank of Nigeria (CBN) on the nation’s external savings indicated that the balances in the reserves rose by $60 million to $33.38 billion In July from $33.32 billion it grossed at the end of June.
Largely, the marginal increase was sequel to the $300 million accruals to the reserves in a two weeks upward trend from $33.08 billion on July 12.
Before the latest accretion, the reserves had recorded declines for three consecutive months, from $35.25 billion on April 16 to $33.08 billion on July 12th, indicating $2.17 billion depletion or 6.2 percent decline.
When analysed on year-to-date(Y-T-D) basis, the external reserves recorded a decline of $1.99 billion or 5.6 per cent from $35.37 billion it accrued as at December 31st, 2020.
Analysts foresee that the reserves may sustain the current trend in the months ahead as crude oil prices at the international markets may sustain the rising trend, thereby raising Nigeria’s foreign exchange earnings from crude oil exports.
In addition, some analysts also believe that issuance of Eurobonds by the fiscal authorities as the Federal Government plans to borrow more funds from the international capital market will also spur some stability or improved accruals to the nation’s foreign reserves.
