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Nigeria’s forex reserves decline 1.46% in a month to $41.2 bln

By Oludare Mayowa

Nigeria’s foreign exchange reserves fell -1.46 percent month-on-month to $41.21 billion by November 29, from $41.82 billion in the previous month, the central Bank of Nigeria (CBN) forex reserve data showed on Thursday.

The data on the website of the regulatory bank showed that the country’s dollar buffer were down by as much as $613 million in a month, in what analysts attributed to the increase dollar sales to the market by the CBN during the period.

However, the country’s dollar buffer has grew 15.61 percent year-to-date from $35.64 billion on January 4, 2021, according to data sourced from the CBN website.

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The reserves have been crawling around $35 billion untill around September when the country raised $4 billion Eurobond from the nternational Capital Market (ICM) in addition to the inflow from the International Monetary Fund (IMF) special Drawing Right (SDR), which help to swell the nation’s reserves.

Last month, the CBN Governor, Godwin Emefiele said that the country’s foreign reserves will surpass the $42 billion threshold by the middle of next year.

Nigeria’s external reserves are expected to surpass US$42 billion by mid-2022. This is due to the sustained increase in crude oil price, the impact of Eurobond Issuance, and the stable exchange rate condition,” the regulatory bank chief said.

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