Nigeria’s forex reserves rise to $32.7 billion

Nigeria’s foreign exchange reserves rose 3.12 per cent month-on-month to $32.74 billion by Oct 3, the Central Bank of Nigeria (CBN), had said, indicating a significant growth in the country’s dollar savings. The external reserves were at $31.75 billion a month earlier. Nigeria’s dollar reserves peaked at the highest in more than two year due to stable global oil price and increase crude production output. The forex reserves were up 34.23 per cent from $24.39 billion a year ago.

Nigeria, Africa’s top economy had suffered currency crisis two years ago in the wake of global fall in prices of oil, pushing the local currency down by more than 30 per cent. However, the bation’s apex bank, the CBN, has been intervening in the forex market since February in its bid to improve liquidity and support the local currency. The regulatory bank has injected around $12 billion into the forex market, which has helped support the Naira.

The local currency firmed to 363 to the dollar on the black market on Friday from 364 a dollar the previous day, while it was quoted at 359.05 per dollar at the investor forex window against 360.46 a dollar the previous day. The Naira remains stable at 305.7 to the dollar on the official interbank market on Friday.