AT LAST, NIGERIA'S RESERVE RISES 0.74% IN TWO DAYS

After heading mainly downwards since its peak of $47.50bn in May, this year, Nigeria's foreign reserves finally reversed trend for the second day on Monday November 26, 2018.

According to figures obtained from the Central Bank of Nigeria, it closed Monday at $41.829bn, up 0.18% on the $41.599bn on Friday November 23.

This meant for two consecutive days, Friday and Monday, the reserves rose from November 22 2018 year low of $41.523bn on Thursday. 

However, the figure is still $5.671bn or 11.9% down on the May 2018 peak from which a turn was made from mainly upwards movement since the year.

The draining of the nation's reserves was particularly fast in October. More than $2bn was drained from it in October alone. 

On October 2, 2018, Nigeria's foreign reserves stood at $44.025bn. It dropped to $43.257bn by the 12th; $42.061bn by October 30 before ending the month at $41.995bn

The Central Bank had once explained that it was committed to defending the Naira and so, will continue to intervene at all the forex trading windows to ensure it does ease and remains stable.

Hence, this new rally can not be attributed to a change of heart. Neither could it be attributed to higher forex earnings since crude oil prices, in recent times stayed firm or headed down despite the American deliberate effort to strangle the Iranian economy.

Can the upwards movement be sustained? May be unless the boost came from in flow of newly acquired hard currency loans.


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