Foreign reserves hit $33.1bn as Naira stables against major currencies

Despite continuous intervention in the foreign exchange market by the Central Bank of Nigeria (CBN), the Nigeria latest external reserves have touched almost highest in three years to stand at $33.11 billion, this even as the nation’s currency, Naira, on Tuesday remained steadied against the three major foreign currencies, US Dollar, Pound sterling and Euro, statistics obtained from CBN and FMDQ OTC have showed.

The latest reserves balance represented the same level last seen since December 2014, but began its rebounded journey few months ago.

Earlier this month, precisely October 3, 2017, the foreign reserves stood at$32.740 billion against the balance of $32.046 billion on September 19, representing total growth of $693.704 million in just11 working day.

Considering the appreciating level in the first week, our correspondent observed that the reserves recorded just $274.873 million, while comparing $32.321billion on 26, 2017 with $32.046 billion a week earlier before extending the gains by $418.831 million in the second week to have less than $700 million appreciation.

In the recent time the apex bank has continued its sustained liquidity injection to the foreign exchange market, just yesterday, the CBN, continued to maintain liquidity in the Foreign Exchange (FOREX) market by injecting $195 million in the Nigerian inter-bank foreign exchange market.

Figures released by the Bank show that it offered a total sum of $100million to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment received the sum of $50 million.

While the invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others received $45 million.

Meanwhile, the local currency on Tuesday sustained depreciated rate of 305.55 to the US Dollar, the same rate it traded on Monday but lower than 305.50 sold on Friday at the official forex market.

The Naira, also, remained unchanged at the parallel market, to close at 364 to the dollar which was lower by a point at 363, compared to closing rate over the weekend and also sustained the previous day closing rate against the two other major foreign currencies, Pound and Euro at 475 and 425, respectively.

However, recorded slight changes at the Nigeria Autonomous Foreign Exchange (NAFEX) window, with depreciated opening figure of 360.17 to the Dollar against 359.95 on Monday but closed at an appreciable rate of 360.42 to the dollar compared to 360.75 traded on Monday and 360.43 sold on Friday.

The Acting Director, Corporate Communications Department of the CBN, Mr. Isaac Okorafor, has said that the apex Bank would continue to increase liquidity, aimed at meeting genuine demand in the market to enhance forex stability.