Stella Dimoko Korkus.com: Foreign reserve now $27.4bn

Advertisement

Advertisement - Mobile In-Article

Wednesday, 1 February 2017

Foreign reserve now $27.4bn

Nigeria’s foreign reserve has recorded 18.2 per cent accretion since its recent uptrend, standing at $27.4 billion with the latest figures from the Central Bank of Nigeria, CBN, for January 2017.




The uptrend which began October 20, 2016 had persisted with minor pullbacks recorded on November 1, 2016 and December 14, 2016, reversing the over one-year persistent decline which bottomed out at $23.2bn on October 19, 2016.

In the 12 weeks upward trend, the reserve added $4.2 billion as against $8.6 billion it had lost since President Muhammadu Buhari came into power in 2015.

The latest figure of the reserve is also on 10 months high over the last one year while indications are that accretion would continue on the back of improved oil revenue.

The month-on-month trend shows an increasing tempo in the month of January 2017 when it garnered $2.002 billion, a huge 7.9 per cent rise. December 2016 accretion was $1.025 billion, about 4.2 per cent rise while November recorded accretion of $840 million, about 3.6 per cent rise.

The uptrend was largely as a result of the rises in the international oil price (Nigeria’s major foreign exchange earner) in the recent month especially in January when it settled above $55 per barrel, as against last year’s average of $43 and 2015 average of $38.

The positive development in the international oil price began mid last year but Nigeria could not benefit much from it due to worsened militancy in the Niger Delta which curtailed oil production and exports with output at a record low of about 1.4 million barrels a day.

However, the positive development could not roll back the massive exchange rate pressure which had come on the Naira since last year. Eventually the Naira/USD value crashed beyond N500/USD1 this week as supply of foreign exchange remained elusive.

Also the positive development in the external sector seems not to have resonated with the revenue pressure the federal government has been experiencing since 2015.

In addition to over N400 billion the government had borrowed from the money market in the month of January 2017, it plans to raise $300m (almost N100bn) by selling a Diaspora Bond targeting Nigerians living abroad.

The bond, which will have a maturity of five to seven years, is expected to be issued by June this year.

Nigeria has asked Goldman Sachs and Stanbic IBTC Bank, the local unit of South Africa’s Standard Bank , to advise it on the sale of the maiden bond. It also appointed United Bank for Africa and First Bank of Nigeria as advisors on the deal.

The government is also pressing on with its request on the National Assembly to approve its external borrowing plan targeting $30bn (about N10tr).

From Vanguard


16 comments:

Miss Ess said...

Good to know.

danny fisiye said...

good to know







#GODWIN™

Anonymous said...

They should do something fast to reduce the cost of things, the way things are rising is so scary

Bootylycious diva said...

Meaning

miss priya said...


However, the positive development could not roll back the massive exchange rate pressure which had come on the Naira since last year. Eventually the Naira/USD value crashed beyond N500/USD1 this week as supply of foreign exchange remained elusive.

Good news

peace maker said...

When will Sai Baba make N1=$1 as he promised?

MamaZ O said...

This will be great news only if the price of dollar to naira drops. 1 dollar is now 502 naira as at this morning. How do you expect businesses that are strictly into importation to survive.
The price of dollars increased because we had no foreign reserve but now that we have to some extent why is it not reducing as well. Please this govt should take several seats.

Anonymous said...

Ehhhhh.....great news abi? Make we begin clap for the. Foreign reserve my foot. Who that one help. $ is 500. A bucket of garri is N900. A bag of cement is N2500,A bottle of oil is N1000. Abeg make bihari go sitdon I'm yansh for UK.nonsesnseeeeeeee

Gideon Okorie said...

DO IT NOW

Victor Kachi said...

Ok seen



Stop wasting money on data. Get free browsing cheats on all networks @ Entclass.com

Anonymous said...

Aswear I am not understanding any of this...

BLUNT CHIC said...

"The uptrend was largely as a result of the rises in the international oil price (Nigeria’s major foreign exchange earner) in the recent month especially in January when it settled above $55 per barrel,...
The positive development in the international oil price began mid last year but Nigeria could not benefit much from it due to worsened militancy in the Niger Delta which curtailed oil production and exports with output at a record low of about 1.4 million barrels a day".


A region gives you so much millions and 70% of them are still striving to survive? Oh! For once the militants have been acknowledged albeit in a negative light. So what is the next step since their elders are not worthy of representing them. Do you think the continuous use of force would sway them?

Mr President can you just do and come back home because as the minister of petroleum, I have just few questions to ask you.

The $1 billion given for ogoni clean up.... I heard a chairman has been appointed. When will it start and when will it end?

The settlement pay given to communities by oil companies.. are you aware that some persons are sitting on it?

I could go on and on but would it change anything? Did I hear someone say NDDC? Oh please! Let them relocate to their own building first and maybe, just maybe they would be the right avenue to channel grievances.

Mrs.R SDK blog Official BFF said...

That's a good one, but what's stopping the unemployment, high tariff rate on commodities etc....

They should also try and fix those! Naira doesn't have much value anymore, except, when it's running in thousands and millions.

SANDY NEKY said...

My dear!

Anonymous said...

Who e epp?

Anonymous said...

Fellow anon, bottle of red oil is 1K6 o with no smiling nor begging!

Related Posts Plugin for WordPress, Blogger...