As at March 22, 2016, the foreign reserves had experienced a rise of $34.7 million in four days, rising from $27,853,597,008 on March 16 to $27,888,285,805 by March 21.
By February 22, the reserves had a rise of $13 million while finding its way out of 11-year low positions.
The first consecutive rise started on Thursday February 24, from $27.804 billion to $27.823 billion as at February 29, surging gradually through the days in-between.
The rise has been attributed to a gradual recovery in oil prices and strict restrictions of capital flow.
After rising by $350 million in August 2015, the foreign reserves have not experienced any of such huge leaps in 6 months, with a meagre rise of $32 million in February 2016.
Major restrictions have been put in place to curb excessive outflow of Nigeria’s foreign exchange, following fears that the reserves may be down to zero in 10 months.
Speaking at TheCable devaluation debate, Adams Oshiomhole, governor of Edo state, had said the nation’s forex outflows vastly outweighed inflow.
“As we speak, I understand that our forex inflow is under $1 billion,” he had said.
“If you’re earning less than one billion, and your outflow remains at more than $4 billion, obviously, all other things being equal, I imagine that in one year, our foreign reserves would be zero.”
The position of the CBN and the federal government on forex has been fiercely criticized by many, who consider capital control as counter-productive.
However, the recent rise of reserves and the passage of the 2016 budget may well vindicate the CBN and the Muhammadu Buhari-led federal government. Click to signup for FREE news updates, latest information and hottest gists everyday
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Wow! This is a good news.
ReplyDeleteLol u gather money dat will be used 2 run economy u said u have saved money wen ppl are all starving 2 death lol. No here. Gallon of fuel in jos is 1700 wat have we done 2 deserve dis it's really terrible
ReplyDeleteThe price we have to pay for being docile for too long.
DeleteWhat do you want the old man to do? If the budget was not passed to law. Otherwise he would be accused of being autocratic
ReplyDeleteThis is a very banal piece of news. The reserves were 30 billion US Dollars when APC took over, now it's 27 billion and you make this sound like an achievement? please stop deceiving Nigerians and get to work. Electioneering campaigns are over please, reality has set in!!!
ReplyDelete