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As the Central Bank of Nigeria (CBN) continues its in its supply of dollars at the foreign exchange market at both the interbank and bureau de change end of the markets, the external reserves of the country has continued to rise, recording a 17.9 per cent increase compared to what it was at the beginning of the year.

The external reserves as at April 24, 2017 stood at $30.702 billion, the highest level since January 2015. The reserves had growing by $455.55 million or 1.5 per cent in April and a cu

The external reserves which was at $30.307 billion as at the beginning of the month had risen by $455.55 billion or 1.5 per cent to $30.702 billion as at April 24, 2017, the latest data provided by the Central Bank of Nigeria on its website.

The external reserve has since the beginning of the year accrued $4.668 billion, an increase of 17.8 per cent when compared to $26.094 billion which it was at the beginning of the year. Dollar accretion of the country has been on the rise since last year as oil prices at the global market which had dropped to less than $40 per barrel had improved and remained in the borders of $50-$55 per barrel.

Also the relative peace in the oil rich Niger Delta region of the county has seen oil production of the county rise from 1.550 million b/d in January to 1.608 million b/d in February according to the Monthly Oil Market Report (MOMR) of the Organization of Petroleum Exporting Countries (OPEC).

The CBN has so far sold close to $3 billion at the interbank market to meet spot, forward and invisibles dollar demand. It had also opened up more windows for Small and Medium Enterprises (SMEs) as well as investors and exporters in an effort to ease the pressure on the naira.

Having resumed its dollar sales to BDCs, the apex bank had increased its weekly sales to the operators from the initial $20,000 to $40,000 in two tranches in an effort to ensure liquidity at the foreign exchange market.

According to the President of the Association of Bureau de Change Operators of Nigeria (ABCON) Aminu Gwadabe, the newly introduced Nigerian autonomous foreign exchange rate fixing for foreign investors and exporters window will make naira sovereign and stronger in the market.

“The newly market derivatives will enhance a transparent, accountable and secured naira determination and afford the CBN to generate huge inflows running to billions of dollars to defend the naira. The window will reverse completely the zero level confidence of investors to highest level of confidence in the market.”

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