Nigeria’s Foreign Reserves Surge 16% in H1 2017

By Modupe Gbadeyanka

Latest data released by the Central Bank of Nigeria (CBN) has revealed that the country’s external reserves improved by 16 percent in the first half of 2017.

As at Thursday, June 29, 2017, when the apex bank last updated amount left the in reserves, it stood at $30.27 billion.

But at the beginning of this year, Nigeria’s foreign reserves stood at $26.09 billion, but closed the first half at $30.27 billion, representing a gain of $4.18 billion or 16.02 percent growth.

Last Wednesday, Business Post reported that the country’s external reserves have been recording a steady improvement lately.

As at Wednesday when we reported amount left in the reserves, it was $30.220 billion.

A day earlier, the external reserves stood at $30.219 billion, while as at Monday, June 19, 2017, it was at $30.218 billion.

Business Post observed from the data released by the CBN that the country’s external reserves had depreciated earlier this month before this latest rise.

On the first day of this month, Thursday, June 1, 2017, the reserves stood at $30.300 billion, but declined to $30.283 billion the next day.

The reserves went on to deplete and as at June 15, 2017, the amount left was $30.211 billion. It contracted further the next day to $30.209 billion before increasing to $30.218 billion on Monday, June 19, 2017.

It has since maintained a steady rise up till Wednesday, June 21, 2017, when the apex bank last updated the amount left in the West Africa’s biggest economy’s reserves.

Recall that the external reserves started to rise after militants in the oil-rich Niger Delta region of Nigeria reduced their attacks on oil facilities in the area. This increased the production of oil.

The central bank, since February this year, has relied on the country’s reserves to intervene in the foreign exchange market in Nigeria, releasing billions of Dollar to the market to ease pressure on the Naira.

This has relatively kept the Naira stable within N365 to N370 to the Dollar at the market lately from over N500 per Dollar it traded back then.