Nigeria foreign reserve which in recent times has been on constant decline due to Central Bank of Nigeria’s weekly forex intervention at making the Naira stable, is on the rise again.
The reserve which declined by a whopping $2.1bn in just 30 days, surged by over $230 million between November 23 and 26, 2018
Data from the Central Bank of Nigeria, showed that the nation’s reserve as at Monday, November 26, 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.