Nigeria’s foreign exchange reserves increased week-on-week by 2.51 per cent to USD26.88 billion, according to latest update from the Central Bank of Nigeria, CBN, last weekend.

The latest uptick in the reserves came against the backdrop of a week-on-week decline in global crude oil price, a factor that had stoked the upswing in reserves in the past one month. Brent crude oil price and OPEC’s reference basket price moderated lower week-on-week by 1.39 per cent and 1.36 per cent to USD56.11 per barrel and USD52.30 a barrel, respectively, at the weekend.

But activities at the interbank foreign exchange market remained minimal even as more pressures came on the parallel market segment of the foreign exchange market, sending Naira value, at N497/ USD1, closer to the dreaded N500 mark.

This was despite indications by the Association of Bureau De Change operators to adopt N400.00/USD1 as BDC rate during a meeting with CBN a day before the latest depreciation.

However, in the Foreign Exchange Futures Market, the value of open contracts rose to US$3.8 billion from US$3.7 billion recorded in the first week of the year. It was observed that the value of the “soon-to-mature” Naira/USD January 25, 2017 dated contracts rose by US$58.3 million during the week.

Meanwhile exchange rates at the spot market for one month, three months, six months and 12 months forward contracts were stable at N305/USD, N305.25, N320.18/USD, N330.537/USD, N346.07/USD and N378/USD respectively
But analysts noted that despite the attractive prices of the contracts on offer, most of the contracts in the Futures market remained largely undersubscribed due to overhanging liquidity crisis in the currency market.

There was USD7.5 million intervention sales by CBN to banks during the week. In the current week, CBN will resume selling USD to BDCs for the first time this year; hence, we expect moderation of the Naira/USD exchange rate
Analysts expect exchange rate at the interbank to remain stable this week as the CBN continues daily intervention. Meanwhile, plans by the CBN to resume dollar sales to BDC operators may offset some of the pressure on exchange rates at the parallel market.

With last week’s depreciation amidst major moves by Central Bank of Nigeria, CBN, to assuage Bureau de Change, BDC, operators with improved availability of foreign exchange resources, some market operators believe the latest depreciation may be speculative, expecting a reversal this week.

Weekly foreign exchange supply

However, Financial Vanguard learnt that dealers are not confident in the arrangements under the International Money Transfer Agency system which the apex bank has been working out for some months now.

They said they are yet to receive foreign exchange supply under the arrangement this year, a situation which may have worsened the liquidity crises in the foreign exchange market while heightening speculations.

This situation was coming at the backdrop of the reduction in the volume of weekly foreign exchange supply to the interbank market by the CBN previous week.

http://www.kikiotolu.com/2017/01/foreign-reserve-hits-269bn-as-value-of.html

Lalasticlala Mynd44 seun Dominique

It's nonsense as long as 1 dollar is still equal to 497 naira and inflation is increasing daily

Just the same way bokoharam was technically defeated and fuel subsidy removed abi? This government can lie pass devil sef

FROM 26.2Billion to 26.9billion

https://www.nairaland.com/3557303/external-reserves-rise-further-n26.2bn

It means PMB is working nah. .

Now, talk of country with good leaders, Norway currently have about $1.2 trillion or more.

lonelydora:
It means PMB is working nah.

Buhari isn't working at all.

He met $30B there.

Our foreign reserve should have been increasing rapidly if only he allowed/allows the currency to float on it's own.

The dullard keeps subsidizing the naira for a select few thereby creating loopholes for few people to make undeserved cash.

Good news but let it also reflect on the lives of Nigerians

Pls check out my signature for quality and durable furniture

Okay

Udonminit

who reserve help...better to use the money to build energy and infrastructure,but the problem is if released,these politicians will use 70% on recurrent expenditure,and 30% on capital projects, na wa.

The more our foreign reserves the poorer the populace. So funny

Pls check out my signature for quality and durable furniture

CBN would resume selling forex to BDCs this week and all these accruals may just disappear. Isn't it time for the CBN to just float the damn currency?

.

Waht??!!

obailala:
CBN would resume selling forex to BDCs this week and all these accruals may just disappear. Isn't it time for the CBN to just float the damn currency?

Currency floating can not work in Nigeria we are too greedy
It would have been up to 700 per dollar now if CBN didnt peg it

Abg when would d SOVEREIGN WEALTH FUND mature? This would help us develop further.. It is well

XXLDICK:

Buhari isn't working at all.

He met $30B there.

Our foreign reserve should have been increasing rapidly if only he allowed/allows the currency to float on it's own.

The dullard keeps subsidizing the naira for a select few thereby creating loopholes for few people to make undeserved cash.

The thing have tire me sef.

I don't know what to type.. if you want the space you can come and collect it

XXLDICK:

Buhari isn't working at all.

He met $30B there.

Our foreign reserve should have been increasing rapidly if only he allowed/allows the currency to float on it's own.

The dullard keeps subsidizing the naira for a select few thereby creating loopholes for few people to make undeserved cash.

Yes....he also met oil prices falling...which meant that the reserve could not rise again....until oil prices went up.

Infact, one year ago....oil was at $28 per barrel. Now it is around $50.....meaning we can save some money after all.

And if he allowed the currency to float on its own....naira would have been over 1000 to $1....and our reserve would have been empty.

Compare with the last admin....which many of you think did a good job....who met the reserve at $60bn and oil prcies at $94 and above and went down to $30...in four years of high oil prices at $100 and above.

Only rising we hear poverty fast spreading like ebola

buhari is clueless

Dullard Buhari the propagandist , I can't see it effect in our economy , May thunder fire his scrotum

Cant the dullard release dollars to crash fx rate

atirolu:
Only rising we hear poverty fast spreading like ebola

buhari is clueless

Yes.....we are a poor nation, that relies on the commodities we sell remaining at high prices so that we can live well.

The problem with this current government is that they too rely heavily on commodities. They do not want to tell Nigerians the truth about our poverty....and the fact that we need hard measures lasting a number of years to get properly rich.

bettercreature:
It's nonsense as long as 1 dollar is still equal to 497 naira and inflation is increasing daily

.

ArabMopol:
Dullard Buhari the propagandist , I can't see it effect in our economy , May thunder fire his scrotum

atirolu:
Only rising we hear poverty fast spreading like ebola

buhari is clueless

atirolu:
Only rising we hear poverty fast spreading like ebola

buhari is clueless

Royalfurnitures:
The more our foreign reserves the poorer the populace. So funny

Pls check out my signature for quality and durable furniture

wailers...

Jengem:
Cant the dullard release dollars to crash fx rate

It would only make a bad situation worse. We are still not earning enough dollars....and once we do that....we would hemorrhage dollars at a fast rate...and the Fx rate would shoot up again.

What we need is a sustainable means of making dollars...one that does not rely on the price of oil.

Jengem:
Cant the dullard release dollars to crash fx rate

that will be after it hits $35b and above. be patient.

XXLDICK:

Buhari isn't working at all.

He met $30B there.

Our foreign reserve should have been increasing rapidly if only he allowed/allows the currency to float on it's own.

The dullard keeps subsidizing the naira for a select few thereby creating loopholes for few people to make undeserved cash.

Zero sense. We knw ur type. Jonathan that left $30billion, met $60bullion. Does like look like he saved at all? And crude oil was $115/barely as against $25 dt PMB met. Use some sense if u cld borrow any

9jakohai:


Yes....he also met oil prices falling...which meant that the reserve could not rise again....until oil prices went up.

Infact, one year ago....oil was at $28 per barrel. Now it is around $50.....meaning we can save some money after all.

And if he allowed the currency to float on its own....naira would have been over 1000 to $1....and our reserve would have been empty.

Compare with the last admin....which many of you think did a good job....who met the reserve at $60bn and oil prcies at $94 and above and went down to $30...in four years of high oil prices at $100 and above.

Damn, I can never say GEJ did a good job. He is worse than Buhari.

But should we compare Buhari to OBJ Then I'll show you it's very much achievable