External reserves climb to $33.1bn
by HOPE MOSES-ASHIKE
October 21, 2017 | 4:53 am| | | Start Conversation
The Nigeria’s external reserves have risen to $33.1 billion as at October 12, 2017 according to data from the Central Bank of Nigeria (CBN).
The pick-up in oil production has been an obvious positive for accumulation in foreign exchange reserves, analysts said.
The price of Brent crude oil rose to $57.12 as at yesterday October 13, 2017. Crude oil account for more than 90 percent of Nigeria’s foreign exchange earnings.
FBNQuest, analysts had said gross external reserves is heading towards the $40 billion mark, the level they last touched in February 2014, before the most recent slide in the crude oil price.
Godwin Emefiele disclosed at the last Monetary Policy Committee (MPC) meeting that external reserves position grew to US$32.9 billion at close of business on September 25, 2017.
“If the price of oil remains stable in the 50s then we are likely to hit $40bn sooner rather than later “, Taiwo Oyedele, head of tax and regulatory services, PWC, said.
According to Oyedele, a high reserve balance will help improve Nigeria’s sovereign credit rating and consequently reduce cost of borrowing cost for government and private sector.
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