External reserves hit $38.7bn, rise by 50% in one year

The nation ’ s external reserves , also known foreign exchange reserves , rose by 50 per cent in the last one year to hit $ 38. 73bn on December 28 , 2017 , the Central Bank of Nigeria data showed on Sunday.
This means that the foreign reserves gained $ 12. 9 bn between December 2016 and December 2017.
Between January and October 2017 , the reserves rose by $ 8 bn , indicating a 30. 9 per cent increase when it recorded $ 33. 83bn on October 31 .
The CBN latest statistic showed that as of December 22, 2017 , the Nigeria ’ s foreign reserves stood at $ 37 . 92bn .
Relative stability in the Niger Delta , uptick in the global oil prices , improvement in Diaspora remittances and establishment of the Investors and Exporters Foreign Exchange Window by the CBN in April 2017 have led to significant growth in the country’ s external reserves especially in the second half of the year .
The breakdown of the latest figure showed that the reserves gained $ 3 . 8 bn in almost one month , rising from $ 34. 9 bn on November 30, 2017 to $ 38. 7 bn on December 28 , 2017 .
This means the external reserves have risen by about 10 per cent in one month.
The foreign exchange reserves had reached $ 23. 6 bn low in October 2016, from $ 40bn high in January 2014 .
In September 2008 , the country’ s foreign exchange reserves hit $ 62 bn, with the Federal Government spending $ 12bn to settle external debts .
In his remarks on the nation ’ s external reserves , the CBN Governor , Mr. Godwin Emefiele , had in November , said , “It is my belief that if we remain resolute with our efforts , policies and actions , we can attain a foreign exchange reserves position of about $ 40bn by end of 2018 . ”
Emefiele had in December disclosed that the nation ’ s foreign reserves rose to $ 38. 2 bn with the issuance of Eurobonds by the Federal Government .
He regarded the external reserves figure as the highest in 39 months .
In November, the Federal Government raised $ 3 bn through Eurobonds , which was oversubscribed by about $ 11bn and split across 10- year and 30- year tranches at issuance yield of 6 . 5 per cent and 7 . 625 per cent , respectively .
The CBN spokesman , Mr. Isaac Okorafor , had said that the increase in foreign reserves could be attributable to peace in the Niger Delta .
Okorafor added that with the sustained forex interventions by the central bank , the apex bank had pushed forex demand from the parallel market into the formal regulated market .
Source_Punch News