(+234) 817 837 7643, (+234) 909 114 1981
Already a Subscriber? Client Login 

« Latest News HighLights

The Nigeria’s foreign exchange reserve stood at $30.25 billion by June 28, down by 0.36 per cent from a month ago, Central Bank of Nigeria (CBN) data showed last Friday.

The reserves showed a 14.8 per cent rise from a year ago, when they stood at $26.34 billion. The  dollar reserves have risen slightly this year, thanks to the rise in global oil prices.

The Organisation of Petroleum Exporting Countries (OPEC) member country has added $4.2 billion to its reserves since the beginning of the year. Foreign reserves stood at $26.09 billion at the beginning of the year.

The foreign exchange reserves rose by $7 billion in six months to hit $31 billion at the end of April. According to FBN Capital Research, the reserves rose after the disbursement of $600 million by the African Development Bank (AfDB) last November and the recent sale of N1.5 million Eurobond.

“There has also been a significant recovery in oil production over the period. With less certainty we can speculate about improved forex management and possible swap transactions,” it said.

The research firm said the positive surprise was due to the upward swing in reserves, since the CBN stepped up its forex sales in early March.

“The steady accumulation makes it less, not more, likely to adopt the forex reforms sought by the market. There is no sign that the CBN plans to slow its sales, which for wholesale transactions alone are close to $3 billion: rather, it launched its latest window (for investors and exporters) only last month,” the report said.

It said the macro-economic damage from the latest period of oil price weakness, which is approaching three years, could have been manageable if a fiscal buffer against external shocks had been functioning.

The CBN also sold N31.94 billion ($104.76 million) in treasury bills last Friday in a bid to tighten liquidity in the money market, while overnight lending rate fell.

Traders said the bank sold N31.52 billion of 349-day treasury bill at 18.59 per cent and N440 million naira of 160-day treasury bill at 17.98 per cent at an auction last Friday.

Cost of borrowing among commercial lenders, however, dropped to around five per cent on the interbank market from around 8.5 percent last week. Traders said cash balance in commercial lenders’ accounts with the CBN stood at N320.35 billion last Friday, boosted by the repayment of around N287.39 billion in matured treasury bills last Thursday.

“Interbank rate is at low level because the CBN sold fewer dollars this week (on the currency market),” a currency trader said.

Traders expect rates to remain flat next week unless the CBN decides to take advantage of the low rates to mop-up excess liquidity from the banking system.

Source: http://thenationonlineng.net/forex-reserves-dip-30-25b-cbn-issues-n32b-debt/

Know your Credit Status!

Click on image