$46bn Foreign Reserves Excite CBN
BY EDMOND ODOK, ABUJA – The Central Bank of Nigeria (CBN) is excited that Nigeria’s foreign reserves on Friday, March 9, 2018 hit an impressive $46 billion mark.
CBN’s Acting Director of Communications, Mr Isaac Okorafor described the steady growth as solidifying the nation’s existing international trading position.
Okorafor said on Sunday that the reserves have been on a stable increase with the price of crude rebounding in the global market and the return of foreign investors to the equity market.
The apex bank spokesperson also said the good news is traceable partly to the lessening rate of rice imports as well as improved local exports.
According to a statement from the CBN, in the last two of February and March 2018, the reserves grew by about $3.2 billion from the $39.3 billion figure as at the beginning of year 2018/
Okorafor, who noted that the reserves figure stood at $42.8 billion mark in February before hitting the current new high of $46 billion, attributed the continued buildup to CBN’s effort at strongly discouraging needless importation and reducing the nation’s import bill.
He also said steady oil and non-oil exports’ inflow as well as huge inflows through the investors and exporters’ window of the foreign exchange market have brought in over $33 billion since its creation in April 2017.
Okorafor said Brent Crude, sold at $65.49 a barrel up by 2.54 per cent as at the close of commodities trading on Friday, March 9, 2018, maintaining that’ “the Bank’s interventions in the foreign exchange window had also helped to moderate the pressure on the FOREX reserves by sustaining liquidity in the market and boosting production and trade.”
The CBN’s image maker also said the apex bank’s policy restricting access to FOREX from Nigeria’s foreign exchange market to importers of some 41 items has continued to make enormous impact on the status of Nigeria’s reserves while also boosting the supply of local substitutes for imported goods; creating jobs at home; and enhancing the incomes of farmers and local manufacturers.
Given the steady incremental growth in Nigeria’s external reserves as projected by the CBN Governor, Godwin Emefiele last year, strong indicators from the apex bank are that with current economic trends holding out much longer, the figure could surpass the $55 billion mark by December 2018 ending.
