Gross official reserves increased by US$1.92bn in January to US$40.69bn. The rapid accumulation of US$12.69bn over 12 months is due to two sizeable Eurobond launches, a small diaspora bond issue and the recovery in oil export revenues (through the NNPC’s share of production).

We have to add the CBN’s fx reforms in H1 2017 because the substantial autonomous inflows have reduced its need to supply fx to the various windows. We should stress that the data are gross and mask the swap transactions the CBN has entered into with local banks.

The unorthodox fx policies did not impact upon the highly successful Eurobond roadshows. Indeed, in a receptive market for sovereign paper with yield attached, several governments with weaker credit stories than Nigeria’s managed to tap the international capital markets in 2017.

The CBN will be pleased with the encouraging signals from the NAFEX window. Turnover (ie both sides of trades) from its launch in April through to 05 February totals US$32.9bn. The weekly average has settled well above US$1.0bn.

Reserves at end-January covered 15.1 months’ merchandise imports, and 10.2 months when we add services. These calculations are based on the balance of payments for the 12 months through to September 2017. The debate should move on from whether Nigeria has an adequate external buffer.

It has been said that the FGN makes too much of this accumulation. We have no quarrel with such self-congratulation provided that we all acknowledge that conditions in the Eurobond market could become problematic for borrowers, that hot money could exit and that the oil price could tumble. (These are not our expectations, incidentally.) The reserves are “real”, however, having grown by a combination of good policy and good fortune.

 

FBN Quest…

Source : https://brandspurng.com/external-reserve-across-the-us40bn-threshold-and-counting/

This is a welcome development. But my question is why is there no concomitant effect on the current high exchange rates? Why is this not changing the cost of garri in our local markets? Or is this another propaganda by the APC to win cheap political points again?

Lai Mohammed, over to you.

The man above just raised a question..
over to who it is over to.
smiles*

My question is; how and when will it improve the people, the common people?

Meanwhile Amaech on the other thread just got approval from buhari to seek Financiers for a crucial rail project which took 7years for just feasibility studies....

That means in actual sense, this is not true economic growth but Eurobond sales and just an influx of proceeds from the sales.

That is the reason everything is still very stagnant and it seems the reserves is increasing.

The only laudable achievement by Buhari regime to have continued from OBJ and Yar'Adua, having had a weak and wasteful link in GEJ despite being our period of plenty.

But is that enough to assuage for a promised change that has refused to materialise even in terms of fighting corruption right at the presidency, and tackling terrorism that is due to the president's kin?

Daura is too sure in 2019.

Story story!

A

T

President Muhammadu Buhari is indeed working. Oh God please give him more wisdom and guidance to lead this nation to greatness.

Fuel Scarcity! Before you crucify Mr President....

Most people propose two solutions and blame the president for inability to select one of the two. The popular suggestions are:-
A--Fixing our refineries
B—Return of fuel subsidy regime
I am not in the oil industries but I read what happens.
Before we discuss further let’s state some facts:
1- It’s obvious landing cost of petrol and its distribution to fuel station, is quite above 145 naira per litre.
2- Daily Fuel consumption in Nigeria is about 35 million liters
3- Our four refineries installation capacity is 445,000bpd.
4- When refined, a barrel of crude produces average of 13% pms (petrol)
5- Therefore our refineries (The four we have) can produce about 8 million liters of petrol per day when they operate at full capacity
6- Fixing the obsolete refineries (of 1983) can cost govt about $2bn (close to a N1tr)
7- Returning the subsidy regime for petrol to be sold at N145/liter will cost govt about 1.5bn naira daily, equivalent to 550bn naira annually. Of which a lot will be looted by marketers crudely.
8- Average share of FG from monthly FAAC is N235bn naira monthly, N2.8tr annually. Of which 65% goes to salaries and other recurrent expenditure. The balance is less than a trillion.

Knowing it cannot build a mega refinery for lack of resources, the FG resolved to engaging the billionaire Dangote, and giving him all kind of support to build a mega refinery for the benefit of all.
If we insist on subsidizing oil now, remember the FG may not be able to provide the required Forex to Dangote for timely completion of his project.
If we insist on fixing our refineries, we may end up with “biyu babu”, spending the money without getting the result.
Now, considering above, it will be futile to spend the limited resources we have on fuel subsidy or trying to fix refineries.
We have only one option, which is allowing the marketers to sell at competing prices. While we await Dangote with his refinery. Hopping his MOU with the government is masses oriented.

Until then lets be patient

Ok

Just to impress the international community.


Meanwhile the people are suffering and smiling.


There's something wrong with this country,hope we can make DD2019 happen.

Well let's wait to confirm this news when the next president comes onboard.

Total rubbish! Foreign reserve is getting fatter while Nigerians are growing thinner. Who is d president saving the money for? Another bastard go come embezzle am.

divinehand2003:
This is a welcome development. But my question is why is there no concomitant effect on the current high exchange rates? Why is this not changing the cost of garri in our local markets? Or is this another propaganda by the APC to win cheap political points again?

Lai Mohammed, over to you.

It means that Buhari is focussing on Savings. Which is a good thing for a country that depends on a product like oil with uncertain future.

If the government want us to feel the effect , CBN will appreciate naira to 250naira to a dollar. Once he do that our enjoyments will increase because our enjoyment in Nigeria depends on importation. reserves will stop rising, we will stop saving and we will suffer for it in the future.

But with no effect on the common man on the street. Black man is cursed indeed

External reserves do not mean anything if Fulanis are on rampage, poverty is the national condition and electric power is still less than 4000mw.

If I'm correct is eurobond not a form of liability.

Na only a useless father go dey save money so that him go dey use him bank account balance dey brag with people outside while him children inside house dey suffer

Please fellow Nigerians, let us get our voter's card ASAP, it's our tool to getting rid of Buhari, Buhari must go because I want to live long, he's already turned the Nigeria government to Northern government, he got to go

Over 40b USD yet your people die of malnutrition. Apc keep deceiving Nigerians since 1800

j

wow

One of the best news so far

Southerners you need to ask, "How much is the North contributing".

Bearing in mind how much the North contributes, you need to ask "how much does it get"

How does this stop the Fulani from killing innocent Nigerians. Ex Reserves can be $400 Billion for all I care, if the lives of the citizens aren't protected, the Govt has failed woefully.





https://www.nairaland.com/4279532/mint-like-new-samsung-galaxy

boolet:
My question is; how abd when will it improve the people, the common people?

Never will as long as Buhari is in Aso Rock chopping our free food on padded budget.
He is borrowing massively at high interest rates to shore up the reserves at low interest rates.
Only an illiterate person would do that.
Buhari is a monumental error of gargantuan proportions that must be corrected in 2019!

This is meaningless in as much as the masses are hungry and are facing so much insecurity.

Money dey bank,

Food No Dey House.....

good