Nigeria’s Foreign Reserves Jump 0.60% in One Week to $33.6bn

By Ashemiriogwa Emmanuel

The foreign reserves of Nigeria increased by 0.60 per cent or about $200 million in one week to $33.6 billion from $33.4 billion in the previous week.

Business Post reports that the weekly growth came as the country’s Debt Management Office (DMO) is planning to sell $6.2 billion Eurobonds to offshore investors in the coming weeks.

When this transaction is completed, the external reserves is expected to hit the $40.0 billion market, which should support the nation’s exchange rate.

Last week, the International Monetary Fund (IMF) allocated $3.35 billion Special Drawing Rights (SDRs) to Nigeria as part of efforts to boost liquidity as the economy faces an unprecedented crisis.

Data obtained from the Central Bank of Nigeria (CBN) showed that as at Thursday, August 5, 2021, the reserves stood at $33.6 billion in contrast to $33.4 billion it closed on Thursday, July 29, 2021.

For a while, the nation’s reserves were depleting as a result of a decline in the price of crude oil, which is the country’s main source of forex earnings.

However, in recent weeks, the account has been rising as the price of the commodity has gradually stabilised to about $70 per barrel.

Since the beginning of this month, the amount in the foreign reserves has increased by $163.2 million to $33,565,859,015 from $33,402,616,892 and in July, the reserves rose by $79.1 million to $33,402,616,892 from 33,323,503,869.

It is expected that this month, the amount in the account would significantly rise as the world economy is gradually getting back to normal. though the threats like the COVID-19 pandemic and others are still much around.