The nation’s external reserves have hit $34bn from $33.6bn attained on October 25, the Central Bank of Nigeria has stated.

The reserves have been appreciating very fast after hitting $32bn on September 18.

The Deputy Governor, Financial System Stability, CBN, Dr. Joseph Nnanna, who disclosed the latest figure in Lagos on Saturday, said the exchange rate stability achieved so far by the apex bank had come to stay.

He expressed confidence that the usual end-of-the-year rush would not push up the naira-dollar exchange rate contrary to some people’s expectations.

The CBN deputy governor said this while fielding questions from journalists at a forum organised by the Chartered Institute of Bankers of Nigeria.

Nnanna was among the chief executive officers of companies who were conferred with the CIBN Fellowship Awards.

Asked if the exchange rate would go up as the end of the year was approaching, Nnanna said, “No, the rate will not go up, take it from me. We have achieved stability and the stability is here to stay.

“The sustainability is already evident, the reserves are growing. As I speak, the reserves are $34bn. When we had volatility, the reserves were as low as $20bn. But let me say one thing: Nigeria can make do with a reserve level of $20bn but it is the press who gives the impression that if the reserves fall below $30bn, then there is a problem.

“No, there is no problem. All we need to manage the economy and manage it properly is reserves that can cover at least three months of import. And in fact, as it is, $10bn or $12bn can give us reserve coverage of four months.”

The CBN chief said the Investors and Exporters foreign exchange window had performed beyond the bank’s expectations, adding that forex inflows in the past few months were huge.

Nnanna stated, “Our exchange rate is convergent; we are getting southward. In the IMF, they talk about the need to have one rate. The one rate can happen organically or inorganically. For us at the CBN, we believe that organic convergence is the way to go. Inorganic convergence, which is forced, will always produce an arbitrage and that we don’t want.

The President, CIBN, Prof. Segun Ajibola, said a flexible exchange rate was helpful in an environment that lacked hiccups in forex management and supply strategies.

He stated, “But in an environment that is so susceptible to the vagaries of foreign exchange market, in terms of inflow of foreign exchange income and over-reliance on basic items for importation, you run the risk of allowing the exchange rate to go to the rooftop, if you free it absolutely.

“Normally, you hardly find any economy where the foreign exchange management succumbs totally to the forces of demand and supply. The best that we have seen is managed floating, which is what the Central Bank of Nigeria introduced in February this year. But as the economy stabilises and is diversified, and as we see more sources of forex earnings stabilising, especially the non-oil export, then we can be more and more flexible in our foreign exchange management policy.”

http://investorsking.com/cbn-rules-naira-fall-external-reserves-hit-34bn/

Now I know election is near,things seems to be better including electricity in my area

If the naira fail to fall it will amount to exploitation of the masses.

Jonzing currency

OK so. no reach abi....? but e close, Smh yeye people

That's good

Kudos to the team

Nice one CBN

Good to know

In as much I'd love a stable currency, the CBN should work hard to improve the value of the Naira. N360/$ is still too high especially because we virtually import everything into the country and more than average Nigerian finds his/cashflow stagnating at what it used to be in first quarter of 2015 or even going lower.

CBN pls epp us, we can't buy anything again, and bae is not happy.

I doubt.

So long as oil is not above our needed minimum of $ 120 per barrel, naira will fall

Want a strong naira? Become a strong exporter of manufactured goods.

Who oil EPP?

This foreign reserve growth in an era of reduced income from oil, might be the only thing Buhari will have to boast of when compared to the Jonathan administration.

Awesome.... I hope they achieve their target of 40bn by the end of d year, as promised by emefiele

Throwback:
This foreign reserve growth in an era of reduced income from oil, might be the only thing Buhari will have to boast of when compared to the Jonathan administration.

And it was achieved by strict restrictions put in place by a CBN governor who was there as a young banker for the similar stuff that happened with our economy during the last oil price fall from 1982-90, 91-2003

Experience is the best teacher

Good job. But its not imparting on the people.

Oga naira no grow 1 naira = 385 dollar

Speculators modath, EgunMogaji & onatisi won't like this.

Ntooooor to them

To me reserve is a redundant money

Naira suppose to have appreciated more than its current value

echelons:
In as much I'd love a stable currency, the CBN should work hard to improve the value of the Naira. N360/$ is still too high especially because we virtually import everything into the country and more than average Nigerian finds his/cashflow stagnating at what it used to be in first quarter of 2015 or even going lower.

CBN pls epp us, we can't buy anything again, and bae is not happy.

I agree with you completely, N360/1$ is still very high. CBN should do more to bring it down to below N250/$. The current high prices of food and other necessities will not come down until the exchange rate is substantially crashed.

Situation can improve further and all people round tripping dollar can stop is just for cbn to use system at their disposal to disperse dollar to genuine importers.all this banks and ogas at top are still miss using power allocated to them by cbn in allocating dollars.and is from experience that i am saying it i am waiting from past one year to get usd for my import from fcmb but my account officer says no dollar but at same time i am getting dollars from sterling Bank without any hassle and on time.
So how can two different banks give different results for same transaction that means something is wrong and cbn should fill loophole.
If it is dollar will reach 305 to 310 within 3 months.
But me i am not cbn governor

Meaning what?

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GavelSlam:
Reserves climbing.

Kudos to those concerned.

I keep liking your comments !

Good