Business Post Contributor
By Ashemiriogwa Emmanuel
The total amount in Nigeria’s external reserves went up by 3.8 per cent or about $1.4 billion in one week to $39.6 billion from $38.2 billion in the previous week.
With this development, the nation’s foreign exchange (FX) buffer is now about $379.7 million away from hitting the $40 billion threshold being projected to reach before the end of October 2021.
According to data sourced by Business Post from the Central Bank of Nigeria (CBN), the FX reserves of the country increased by $202.6 million from the $38.2 billion recorded on Thursday, October 7 to $38.4 billion the following day.
The amount then expanded by $620.5 million to $39 billion on Monday, October 11, and maintained a consistent increase to $39.2 billion on Tuesday and to $39.4 billion before resting at $39.6 billion on Thursday, October 14.
In recent times, the nation’s FX buffer has been increasing as a result of the performance of crude oil prices in the international market and other significant factors that directly affect the supply of forex into the country’s savings.
A recent survey conducted by Reuters on oil output revealed that Nigeria’s crude oil output rose by 170,000 barrels per day (bpd) in September 2021, indicating revenue increase and more reserves to solve the country’s forex crisis.
Business Post reports that the weekly growth also occurred as the country’s Debt Management Office (DMO) is planning to return to the Eurobond market to borrow fresh $2.1 billion after it successfully raised $4 billion in September 2021, which is yet to reflect in the reserves.
The consideration of this transaction is for the balance of its $6.1 billion borrowing from offshore investors.
The DMO’s Director-General, Mrs Patience Oniha, who gave the hint during an interview in London last week, said, “We are going to have a meeting with our transaction parties after this engagement if we will come back to the market for the balance.
“We need to assess the market to understand how to proceed. We remain confident international investors find our credit story enticing enough.”
