By Editor
Nigeria’s foreign exchange reserves rose to more than two-year high of $31.22 billion as at August 8, the Central Bank of Nigeria (CBN) data showed on Wednesday, August 9.
Africa’s biggest economy dollar reserves which hitherto was battered by lower oil prices, climbed back to a level last reached in July 2015.
Since President Mohammadu Buhari took office, the nation has faced the challenge of dollar shortage as petrodollar revenue shrank on low oil price while activities of Niger Delta militants disrupted her chances of increasing output.
As foreign portfolio investors remain positive about Nigeria’s future, driven by increase oil revenue, the nation’s stocks hit a 33-month high on Tuesday, August 8.
Foreign investors bought shares following improved liquidity on the FX market and a strong half-year performance by listed companies.
The CBN has been boosting the country’s economy with forex injection into the market with the latest on Monday, August 7 being the injection of $195 million as part of intervention in three segments of the market.
Isaac Okorafor, the Acting Director, Corporate Communications Department of CBN, had said in a statement in Abuja that “in the wholesale segment of the inter-bank foreign exchange market, the bank auctioned $100 million and also intervened in the Small and Medium Enterprises (SMEs) with $50 million.
“The invisible segment was also offered $45 million intervention”
Okorafor reaffirmed the CBN’s commitment to sustain liquidity in the market to ensure that genuine requests for FOREX were met as well as improve liquidity and flexibility in the market.
The intervention in the new week followed the major intervention last week of 462,336,426.74 million dollars.
About $267 million was offered for the Retail Secondary Market Intervention Sales (SMIS), while $100 million was offered as wholesale interventions.
The Small and Medium Enterprises (SMEs) forex window got $50 million while $45 million was offered for the invisibles which included Business/Personal Travel Allowances, tuition and medical fees.
Okorafor said the leadership of CBN was upbeat with the positive impact its current foreign exchange management was having on the manufacturing sector, agriculture and economic activities across the country.
He also reiterated the CBN governor’s desire to achieve stability and ultimately ensure convergence of rates in the market.