Nigeria’s Reserves Grow By $615.3m As Naira Continues To Slide

Nigeria’s Foreign reserves has grown by $615.3m by the end of August, data analysed from the Central Bank of Nigeria’s website reveals.

On August 31, foreign reserves was $34.02bn, a figure which shows an improvement from the $33.4bn held by July 30.

But the marginal rise has not saved the naira from continuous pressure.

Between December 30, 2020 to August 31, reserves plunged around 3.8 per cent which is an equivalent of $1.26bn, from $35,373,915,213 in December to $34,017,914,833 in August 2021.

The country has not faired well with offsetting its forex obligation due to the rising demand for the dollar orchestrated by the reopening of the economy after Covid-19 cut down foreign exchange proceeds from the sale of crude oil.

Data released by the National Bureau of statistics shows the economy grew by 5.01 per cent due to the improvement in economic activities.

The apex bank has since 2020 battled to settle the growing demands for dollars among manufacturers and Nigerians who need to fulfil their import obligations.

The dollar crunch has also affected the value of the naira at the parallel market which is currently trading at N528/dollar.

Operators of Bureau de Change who spoke to THE WHISTLER in Abuja had projected the dollar would continue to rise against the naira due to the high demand.

“The rise is based on the principle of demand and supply. People are looking for more dollars and there is little in the market,” Shehu Jega, a forex expert and a dealer at Bani Mbaka Bureau De Change in Zone 4 said.

Data gathered from CBN’s movement of reserves show that the reserves grew most between December 30, 2020 to January 29 2021 to $36.3bn, up by $929.2m.

It, however, fell by $1.2bn to  $35.1bn on February 26, from the $36.3bn held by the end of January.

The reserves opened in March at $34.99bn and dipped further to $34.88bn which represents a $116.7m loss.

By April 31, CBN data showed reserves rose to $34.88bn from the $34.82bn recorded by the end of March.

On May 31, Nigeria’s reserves fell to $34.2bn from the amount obtained by April ending.

The reserves dipped further in June to $33.32bn, down from $34.2bn posted on May 31.

But the reserves marginally improved by the end of July to $33.4bn against the June  figure which was $33.32bn, while by August 31, 2020 it rose to $34.bn.