Nigeria’s forex reserves end falling streak after nearing one-year low

Nigeria’s foreign exchange reserves have ended a falling streak that brought the reserves near a one-year low despite a significant rise in global crude oil prices.

The reserves, which had been on a downward trajectory in recent months, rose on Mar. 19 for the first time since Jan. 25, 2021 when it hit a high of $36.52 billion.

The latest data obtained by Markets Reporters from the Central Bank of Nigeria showed that the reserves increased to $34.62 billion on Wednesday from $34.42 billion on Mar. 18, the lowest level since May 11, 2020.

The CBN Governor, Mr Godwin Emefiele, in a communique at the end of the Monetary Policy Committee, said the committee noted with satisfaction the improvement in the level of external reserves, which stood at $36.46 billion at the end of February 2021, compared with $34.94 billion in January.

“This reflects the recent upsurge in crude oil prices on the backdrop of the renewed optimism on the successful deployment of COVID-19 vaccines across the globe,” he added.