The naira remains stable at the official and parallel markets, with the foreign exchange (forex) reserves standing at $46.7billion, a report by Exotic Capital, an investment and research firm, has said.

The naira exchanges at 362 to the dollar in the parallel market and 305.6 in the official market. It has remained at those rates since April, last year, after the Central Bank of Nigeria (CBN) resumed forex interventions in the market.

The report said although the level of reserves was still below the record high of $64 billion realised in August 2008, it is nearly double the $24 billion recorded in October 2016, increasing by more than $22 billion in 15 months.

The reserves hit $46.7 billion on March 29, from just over $23 billion in October 2016, as the economy continues to attract huge investment inflows from foreign investors.


The economy benefited from increased forex supply with over $20 billion inflow to the Investors’ & Exporters’ (I&E) Forex Window since inception in April 2017.

The report said the macro fundamentals suggested the Central Bank of Nigeria’s (CBN’s) appropriate reaction function would have been to hold rates unchanged as it did in last week’s Monetary Policy Committee MPC meeting.

“We have written extensively on Nigeria’s multiple exchange rate system and will abstain from further discussion at present, suffice to say that a fairly valued naira at 360 to the dollar combined with high domestic rates has led to a tremendous increase in the level of gross foreign reserves held at the CBN,” the report said, adding:

”With reserves at their current levels, it is easy to imagine the MPC being in a position where it could afford to cut as it is less dependent on attracting dollar inflows than it has been to both build reserves and stabilise the naira.”

A similar report by FBN Capital, titled: “Towards the $50 billion threshold, and counting”, said the rapid accumulation of $15.96 billion over 12 months was due to two sizeable Eurobond launches, a small diaspora bond issue, the recovery in oil export revenues (through the Nigeria National Petroleum Corporation’s share of production and, more recently, the steady bid by the CBN at the I&E Forex window.

“We should stress that the data are gross and mask the swap transactions the CBN has entered into with local banks. The steady bid by the CBN has been seen variously as a response to the softening of demand for forex by importers and other economic actors, and as a move to contain naira appreciation,” the FBN Capital said, adding:


“The CBN will be pleased with the healthy signals from I&E Forex window where the weekly average has now settled above $1 billion. Reserves at end-March covered 17 months’ merchandise imports, and 10.9 months when we add services. These calculations are based on the balance of payments for 2017. The ratios are a little less impressive, but still robust, if we use the measure of current account payments (including income debits) favoured by the ratings agencies.”

Before the stability in the forex market and naira, the economy witnessed a depressed Gross Domestic Product (GDP) growth, which culminated in a recession in 2016. There was also rising inflation, which peaked at almost 19 per cent in January 2017 and a persistently rising unemployment rate to 14.23 per cent in 2016 fourth quarter from 6.41 per cent as at 2014 fourth quarter. There was also a significant depreciation of the exchange rate, reaching N525 to $1 in February 2017 and witnessed a fast depletion of the reserves which bottomed out at about $23.6 billion in October 2016 from as high as $40 billion in January 2014.

http://www.akelicious.net/2018/04/467b-foreign-reserves-keep-naira-stable.html

ok

I knew d foreign reserve will grow to $100b under dis GOVERNMENT.

We just need to support this government, things will get better

This is the most clueless government I've ever seen, in just three years our debt profile tripled, with nothing to show for it & one sycophant just sit down to type rubbish on nairaland.

Leboska:
This is the most clueless government I've ever seen, in just three years our debt profile tripled, with nothing to show for it & one sycophant just sit down to type rubbish on nairaland.

To you guys, it's hatred over everything/anything

We will extend your period of hatred to 2023.

Not stable enough.....




Bring it to parity so I can finally be a vibrant economic citizen of the world...... Used to be as poor as the Japanese Yen... But our naira is the reference point now

Whatever regime would take over from Buhari, Nigerians must ensure that no one named Jonathan is allowed to have access to our foreign reserves.

That name Jonathan is a cursed name. At a time a nation needed a Joseph to save up during the time of plenty, we were saddled with a Jonathan that is known to fraternize with the enemies of his own father and surrender his inheritance to his friends. And this Nigerian Jonathan did squander the resources of his nation and encouraged his friends who could not steal to provide their bank accounts to receive loot.


This is the same foreign reserves that Jonathan and Okonjo Iweala ran down from $47b that he inherited from Yar'Adua to $29b/$30b as at the time he handed over to Buhari, despite being the regime that made the most dollars from Nigerian crude oil sales ever. They also ensured to run down the Excess Crude Oil Account, with many illegal withdrawals made by Okonjo Iweala despite not securing the approval of the authorizing FAAC.

Indeed, Jonathan's destiny was to bankrupt Nigeria as opined by Tunde Bakare.

Already borrowing N470b to pay federal civil servants salary in Feb/Mar/April 2015, at a time time crude oil was still selling above $50/barrel before plummeting to $27/barrel in this Buhari regime that did not have to borrow to pay salaries.

This same Jonathan regime despite making so much revenue from oil, refused to pay its IOC JV partners, the government's share of funding that totalled $5b, only to be too broke to pay up when the oil price crisis engulfed the oil industry and the JV partners demanded for their money, and started laying off personnel due to abandoned oil projects that could not be continued owing to paucity of funds.

PMB is determined to build Nigeria. We only need to be patient and watch him make us proud.

Imagine what a president who could add over $23bn to the reserves in less than three years despite a significantly diminished earnings will achieve with surplus income!

PMB is the best president we've had since 1999.

Children of hate will avoid this thread like a plague!

kudos to Buhari, Kemi and the CBN Governor.

let it come down abeg.

Independent pigs will ignore this wonderful news, while they search for threads, that have Reno Omockery, FFK or Fayose reactions....

Ipob are really pigs!

Is this a good news ?
I will make 1$ = 1#

Good development.

In hunger? So a hungry man is a stable man?

https://thenationonlineng.net/46-7b-foreign-reserves-keep-naira-stable/ stop copy and paste na waste of time

Nigerian government ought to also appreciate and thank the ever hardworking Nigerian youths who despite the hard recession and mass unemployment never gave up in their bid to survive at all cost which led many Nigerian youths into venturing into various online businesses like:

1. Freelancing on fiverr, upwork, etc
2. Blogging
3. App development
4. Sales of kindle ebooks on Amazon
5. Amazon affiliate marketing
6. CPA, PPD

Which has contributed in attracting undocumented FOREX into the Nigerian economy and helped in boosting Nigeria's FOREX.

Believe me, these hardworking Nigerian youths working online as freelancers attract at least $500,000 into the Nigerian economy every month.

It is high time CBN and FG recognise their effort and make policies to encourage more youths to startup legal online businesses instead of engaging in Yahoo Yahoo scam.

Islamicpope:
I knew d foreign reserve will grow to $100b under dis GOVERNMENT.

What of the debt profile? Please let's face reality than sentiment.

Nothing kills a nation like debt.

Growing debt and FR simultaneously amidst hardship?

The Foreign Reserve that Goatluck and his gang of 40 thieves lead by the puff-puff cheeked world bank fraudster called Ngozi Okonjo-Iwealla, Diezani Alisson-Maduekwe and Mama Piss Sheppopo looted, the people's general has replenish it. The road is rough, the task is tough, the masses are hungry, our graduates are roaming the streets, even me, I am under-employed but there is light at the end of the tunnel. I stand with Buhari, what about you?

An imaginery foreign reserve figures when Buhari & his 40 gang thieves have run this country into debts.

Tell me another story.

This thread is for block headed zombies

Children of hate won't see anything good in this news

This is why the cursed party of thieves aka PDP are recruiting more miscreants to continue insulting Buhari all over the social media because if they succeed in swindling Nigerians to vote them back to power, all media expenditure will be reimbursed. God forbid anything looking like PDP ever go close to the seat of power in the next 50 centuries.
This is how PDP are viewing the growing foreign reserve.

Leboska:
This is the most clueless government I've ever seen, in just three years our debt profile tripled, with nothing to show for it & one sycophant just sit down to type rubbish on nairaland.

Dullard, what do you know?

Lies from of hell.

GavelSlam:


Please give examples?

Can a poor man ask for a loan if not credit worthy?

Do you think lending homes do not carry out due diligence?

That you are credit worthy means you should be indebted?

What an economist.

Nigeria as an OPEC member is already credit worthy so what are you telling us? I am real. No sentiment.

Haba! What an economist!!

Debt is growing at more than double the rate of the reserves.

So typical of this deceptive government.

Printerscanner:
The Foreign Reserve that Goatluck and his gang of 40 thieves lead by the puff-puff cheeked world bank fraudster called Ngozi Okonjo-Iwealla, Diezani Alisson-Maduekwe and Mama Piss Sheppopo looted, the people's general has replenish it. The road is rough, the task is tough, the masses are hungry, our graduates are roaming the streets, even me, I am under-employed but there is light at the end of the tunnel. I stand with Buhari, what about you?

The people you mentioned are greater than your entire tribe and their supporters combined, nut head why can't you excel like them. Mumu boy with an iliterate president.