Egypt’s Forex Reserves Surpass Nigeria

June 7, 2017
Egypt’s Forex Reserves Surpass Nigeria

Egypt’s Forex Reserves Surpass Nigeria

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

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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