Foreign reserves back to $31bn as oil prices improve

Central Bank of Nigeria Headquaters, Abuja

As oil prices improve at the international market, Nigeria’s foreign exchange reserves has recorded an upward swing to $31 billion, after declining to a near $30 billion mark in June.

Analysts said the development is a prove of the stable oil production and relative increase export earnings, particularly from the non-oil sector of the economy.

The gain could also be attributted to understanding of the foreign exchange market dynamics by the apex bank.

In the last two months, the international price of crude oil has been unstable, oscillating between $45 per barrel to $51, but has been off-set by stable oil production put at 1.8 million barrels per day.

The new reserves profile is coming on the heels of significant gains in the last two weeks, which were estimated at an average of $200 million and has increased the optimism over CBN’s capacity to sustain interventions in defense of the naira.

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