By Oludare Mayowa
Nigeria’s foreign exchange reserves grew 7.84 percent month-on-month to $36.59 billion by September 29, from $33.93 billion in the same period of last month, data from the Central Bank of Nigeria (CBN) has shown.
The country’s foreign exchange reserves rose by $2.66 billion in the 30 days to September 29, 2021, according to the regulatory bank report, the biggest growth in recent time.
Also, the dollar reserves grew 2.66 percent year-to-date from $35.64 billion on January 4, 2021 and rose 2.43 percent year-on-year from the $35.72 billion level last year.
Before now, the dollar reserves for the country have consistently declined due to low acreation from oil exports earnings and other sources.
Analysts attributed the recovery in the nation’s forex reserves to improve foreign exchange inflows due to global oil price recovery.
A plunge in oil prices had eaten into Nigeria’s foreign reserves, forcing the CBN to introduce currency controls, which has frustrated businesses and caused the economy to contract.
Brent Crude rose 0.35 percent on Tuesday to $81.61 per barrel, a positive development that could also impact on the Nigeria’s forex reserves.
Nigeria depend largely on revenue from crude oil exports to boost it forex reserves and support the local currency.
Industry observers are also expecting a positive impact of the increase in the reserves on the domestic foreign exchange market.T
hey also expect the reserve to grow further in the coming days as the proceeds of the $4 billion Eurobond issued recently by the federal government hits the reserves.
The local currency depreciated by 0.04 percent to N413.55 to the dollar on the official Investors and Exporters (I&E) forex window on Monday.
At the black market the naira is trading between N575-N580 to the dollar depending on the location in Lagos and Abuja, sources said.