The nation’s foreign exchange reserves have declined for the first time in eight months, slipping to $47.793bn, according to the latest data from the Central Bank of Nigeria.
The reserves, which have risen by over $9bn this year, fell by $72m from $47.865bn on Thursday, May 10.
The significant increase in the reserves was largely driven by the rebound in oil prices and production, government’s external borrowing (Eurobonds) and the resumption of foreign capital inflows.
The reserves rose to $31.763bn on September 9, 2017, from $31.745bn on September 8. They fell to $31.748bn on September 7 from $31.825bn on August 31.
The foreign exchange reserves recorded a four-year high at $47bn last month from $38.765bn on December 29, 2017.
The foreign exchange buffer of the CBN has continued to increase recently over the steady increase in global oil prices and Federal Government’s Eurobond borrowing, among others.
The CBN Governor, Mr. Godwin Emefiele, had projected that the reserves might hit $60bn in 2019, if the trend persisted.
He said increases in the price and shipment of oil, Nigeria’s biggest foreign-currency earner, and improved investor confidence, meant the CBN could build its reserves to $60bn over the next 12 to 18 months.
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