After losing a record $2.1
billion in 30 days, Nigeria’s foreign reserve is on the rise again.
Data from the Central Bank of
Nigeria, seen by TheCable, showed that the nation’s reserve surged by over $230
million between November 23 and 26, 2018.
As at Monday, November 26, the
reserves stood at $41,829,552,421 — its highest level since November 2, 2018.
After the United States Federal
Reserves raised interest rates on September 26, 2018, the Nigerian reserve has
experienced a downturn, falling from $44,458,822,331 to $42,916,930,792 as at
October 16, 2018.
The rate hike put pressure on
currencies across many emerging markets, causing significant depreciation
across these nations.
To keep the naira stable, Godwin
Emefiele, governor of the Central Bank of Nigeria (CBN), had said the bank,
under his leadership, will keep defending the naira against external pressure.
“It is a choice we have to make
and at this time, the choice for Nigeria is to maintain a stable exchange rate
so that businesses can plan and we don’t create problems in the banking
system,” Emefiele had said.
The defence of the naira caused
the nation’s foreign reserves to record the biggest monthly drop since 2015.
In what seems like the latest
recovery, the reserve moved from $41,523,249,351 on Thursday to $41,829,552,421
on Monday.
The naira has remained relatively
stable at the official interbank market, trading between 360 and 364 to the
greenback.
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