By Modupe Gbadeyanka
The foreign exchange reserves of Egypt have exceeded Nigeria’s for the first time since 2011, Bloomberg is reporting.
Last year, Egypt floated its currency and resulted into its economy regaining shape again.
Also after the move, the North African nation secured funding from the International Monetary Fund (IMF), to support the economy.
However, on the part of Nigeria, it has refused to emulate its African counterpart despite calls from experts and citizens.
Instead, the Nigerian government, through the Central Bank of Nigeria (CBN), has continued to take more forex from the foreign reserves to release into the market in a bid to ease the pressure on the Naira.
Nigeria is presently struggling to get out recession.
According to Bloomberg in its report, Egypt’s “overseas holdings of local-currency bonds (have soared) to $7.5 billion from just $100 million earlier.”
But in Nigeria, “reserves fell 2.3 percent last month.”
“The lesson? Sometimes it’s better to let the market tell you what the rate should be, than the other way around,” Bloomberg said.
Source: Bloomberg
