As a result of tight fiscal policy anchored on blocking of leakages, Nigeria’s foreign reserves has risen from $29.1 billion left by the immediate past government to $31.89 billion presently.

Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele made this disclosure yesterday while briefing the Senate leadership on the state of the nation’s economy and actions being taken by CBN to boost it.

Emefiele, at the briefing explained that though the crash in the price of crude oil in the international market since last year still has serious rippling effect on Nigeria’s economy, being a mono-product one over the years, signs of recovery are already emerging, one of which is the rise in the nation’s foreign reserves from $29.1billion to $31.89billion within a space of five weeks.

He said: “Reflecting the sharp fall in oil prices and speculative foreign exchange activities, the external reserve declined from $37.3 billion in June 2014 to $29.1 billion at the end of June of 2015.

“But today, I am delighted to note that with the strong efforts of President Muhammadu Buhari, to block all leakages as well as the vigilant demand management strategy of the CBN, we have seen our foreign exchange reserve begin a gradual recovery.

“As at the 7th of July, 2015, the reserve stood at $31.89 billion, a trend we find extremely gratifying”.

NO TO CHOP MAKE I CHOP GOVERNMENT......God punish devil

Good

Another loose propaganda when this is pure economics.

Prior to this time, the FG through CBN provides buffer for the Naira using the reserves. This is done by financing foreign transactions at CBN fixed rates... and this includes importers, students, medical tourists, PTA etc. As such, Nigerians with proper documentations do not buy dollars from the black market as this is financed through the CBN

Fast forward to last few weeks, CBN has stopped financing imports for 40 staple items including rice, tomato paste etc. These were the bulk items that make up over 80% of the CBN foreign transaction financing. Unfortunately, these importers have had to go seek for foreign currencies in the black market.

Due to this happenings, The dollars that were hitherto available for buffering the naira through financing foreign imports have been re-channelled back to the reserves.

But unfortunately, this is also one of the major reasons a dollar is selling for 245 naira because these importers have increased the demand in the black market, a kilo of chicken has increased from 700 to 1200 and almost the price of every item in the market has risen by 20% or more.

The key question is now.... Do we have to grow our reserves at the expense of very high inflation? Of what benefit is it to the Nigerian masses that we have a huge reserve but the Naira is in a mess and the masses with a minimum wage of 18K cannot afford to eat.

The current increase in reserves is a farce and the bane of our current economic and financial troubles. This is why the country desperately needs the services of a finance minister/ economic adviser to check the activities of CBN

Question for haters and pessimists.

=Intergrity

shamsuRana:
Question for haters and pessimists.

The haters and the pessimists might be right after all

I hear

even the juju man 4 my village no fit do am... buhari all d way

myboy2010:
even the juju man 4 my village no fit do am... buhari all d way

It doesn't hurt to investigate and find out things for yourself.

What exactly has Buhari done to increase Reserves?

Flets:


It doesn't hurt to investigate and find out things for yourself.

What exactly has Buhari done to increase Reserves?

blocked leakages - e.g GEJ and ministers selling or taking a cut out of 1 million barrels daily sales

Noooo, he sold some of his cows in his farm in daura and added it to the reserve account

blacksta:


blocked leakages - e.g GEJ and ministers selling or taking a cut out of 1 million barrels daily sales

dt guy u quoted is one hell of a sadist. He has never seen anytin good in PMB. I just hope he doesn't continue ds way else.......

Op, stop insulting Buhari' and blame the inexperienced CBN Governor who is hoarding Foreign Exchange and forbidding to issue Forex for importation of goods not on prohibition list.

As we speak, inflation is skyrocketing and the value of Naira to Dollar depreciating because importers are being forced to source for forex through black market.

This is what layman calls Penny wise Pound foolish

This only happens when you have a slow and steady responsible person running the affairs of the nations compared to ....The wailers should complete the statement for me !!!

sammyj:
This only happens when you have a slow and steady responsible person running the affairs of the nations compared to ....The wailers should complete the statement for me !!!

Nigeria is drowning Economic wise for this policy where CBN is hoarding Dollars and you are here rejoicing and attributing such foolishness to Buhari's achievements.

Kai, Nigerians don suffer.

Have you ask yourself, the effect of the so-called foreign reserve appreciation to Naira and inflation? Why are they both destabilizing the Economy?

Lies!!

...

IsraeliAIRFORCE:


Nigeria is drowning Economic wise for this policy where CBN is hoarding Dollars and you are here rejoicing and attributing such foolishness to Buhari's achievements.

Kai, Nigerians don suffer.

Have you ask yourself, the effect of the so-called foreign reserve appreciation to Naira and inflation? Why are they both destabilizing the Economy?

By the way if there is no enough dollars in the foreign reserve to support the Naira and when your economy is import dependent rather than export dependent. Further the price of oil fallen and the stolen common wealth by the past administration is now being blamed on baba' blocking economic leakage. I believe you are either one of the corrupt politicians or wailing wailers . Shikena! !!

IsraeliAIRFORCE:


Nigeria is drowning Economic wise for this policy where CBN is hoarding Dollars and you are here rejoicing and attributing such foolishness to Buhari's achievements.

Kai, Nigerians don suffer.

Have you ask yourself, the effect of the so-called foreign reserve appreciation to Naira and inflation? Why are they both destabilizing the Economy?

Wow!
It seems like some ppl want our hard earned foreign currency reserves be made available and wasted on frivolous importation of rice, tomato paste, even tooth pick (items that we can adequately produce locally if encouraged) in order to temporally and artificially keep down inflation so that we can continue enjoying our unsustainable addiction for unnecessary imported goods.

ItsMeAboki:
Wow!
It seems like some ppl want our hard earned foreign currency reserves be made available and wasted on frivolous importation of rice, tomato paste, even tooth pick (items that we can adequately produce locally if encouraged) in order to temporally and artificially keep down inflation so that we can continue enjoying our unsustainable addiction for unnecessary imported goods.

ItsyouABOKI

That's all

Flets:
Another loose propaganda when this is pure economics.

Prior to this time, the FG through CBN provides buffer for the Naira using the reserves. This is done by financing foreign transactions at CBN fixed rates... and this includes importers, students, medical tourists, PTA etc. As such, Nigerians with proper documentations do not buy dollars from the black market as this is financed through the CBN

Fast forward to last few weeks, CBN has stopped financing imports for 40 staple items including rice, tomato paste etc. These were the bulk items that make up over 80% of the CBN foreign transaction financing. Unfortunately, these importers have had to go seek for foreign currencies in the black market.

Due to this happenings, The dollars that were hitherto available for buffering the naira through financing foreign imports have been re-channelled back to the reserves.

But unfortunately, this is also one of the major reasons a dollar is selling for 245 naira because these importers have increased the demand in the black market, a kilo of chicken has increased from 700 to 1200 and almost the price of every item in the market has risen by 20% or more.

The key question is now.... Do we have to grow our reserves at the expense of very high inflation? Of what benefit is it to the Nigerian masses that we have a huge reserve but the Naira is in a mess and the masses with a minimum wage of 18K cannot afford to eat.

The current increase in reserves is a farce and the bane of our current economic and financial troubles. This is why the country desperately needs the services of a finance minister/ economic adviser to check the activities of CBN

I'm an ardent and staunch supporter of this current government but my friend...you have spoken very well.