There are concerns over the steady decline of Nigeria’s foreign reserves since the last three months despite the rise in oil prices and accruals from foreign bonds issuance.

Exclusive findings by LEADERSHIP Sunday showed that the reserves recorded a huge decline from $47,787,183,153 billion where it was on June 22, 2018 to a “worrying” point of $45,468,258,469 billion on Thursday, September 6.

The reserves took a bullish peak between May 18 – when it was $47.799 billion, and June 21 – when it had the last high figure of $47,784,255,384 billion, according to data obtained from the Central Bank of Nigeria (CBN). Apart from oil which accounts for about 80 per cent of Nigeria’s foreign reserves, the federal government is also hoping to borrow N849 billion (denomination in dollars) from the foreign market to finance the N1.6 trillion budget deficit. Experts have blamed the continuous decline in reserves on three factors: increased dollar supply by the CBN to the foreign exchange market, instability in the nation’s securities and exchange market, and the coming general elections in the country.

Those who spoke with LEADERSHIP Sunday on the development at the weekend expressed worry that the situation could have negative implications on the fragile growth of the economy and consumer demand.

They said the decline in the external reserves would persist in the short term as demand for the green back grows amid the continued intervention of CBN in order to curtail the pressure on the naira at both the I&E and BDC segments as well as the expected increased demand by portfolio investors who have been reported to be leaving the country ahead of the 2019 general elections.

Transactions on the floor of the equities reportedly took a bearish direction last week, with most highly capitalised securities not left out in the price nosedive, a development that forced market capitalisation to lose by about N4 billion in the weeklong trading. By the close of business on Friday, the stock market had fallen further by 0.88 per cent amid sustained profit taking activity.

The All–Share Index shed 304.15 absolute points, representing a decline of 0.88 per cent to close at 34,110.22 points. Also, the market capitalisation declined by N111 billion to close at N12.453 trillion. The fall was ascribed to profit-taking by investors or shareholders. LEADERSHIP Sunday reports that Nigeria operates a relatively regulated foreign exchange regime.

The CBN had intensified injection of hard currencies into the forex market since it signed a currency swap deal with the Peoples Bank of China to ease pressure on the Nigerian foreign exchange market. On Friday, the Central Bank injected the sum $303.91 million into the interbank retail Secondary Market Intervention Sales.

This is in addition to the sale of CNY 46.58 million in the spot and short-tenored forwards. The director, Corporate Communications at the CBN, Mr. Isaac Okorafor, said the releases were for the payment of Renminbi denominated Letters of Credit for agriculture and raw materials. He added that the sales in the Chinese Yuan were through a combination of spot and short-tenored forwards, arising from bids received from authorised dealers.

Read More at: https://leadership.ng/2018/09/09/foreign-reserves-decline-by-2-3bn-in-11-weeks/

APC now

Thieves in Power

Mohammandu Buhari and Yusuf Buhari are stacking up. I hope the next president don't meet an empty Treasury.

Okay now.
the same reserve they are totting as one of their achievement.

engineerboat:


There are concerns over the steady decline of Nigeria’s foreign reserves since the last three months despite the rise in oil prices and accruals from foreign bonds issuance.

Exclusive findings by LEADERSHIP Sunday showed that the reserves recorded a huge decline from $47,787,183,153 billion where it was on June 22, 2018 to a “worrying” point of $45,468,258,469 billion on Thursday, September 6.

The reserves took a bullish peak between May 18 – when it was $47.799 billion, and June 21 – when it had the last high figure of $47,784,255,384 billion, according to data obtained from the Central Bank of Nigeria (CBN). Apart from oil which accounts for about 80 per cent of Nigeria’s foreign reserves, the federal government is also hoping to borrow N849 billion (denomination in dollars) from the foreign market to finance the N1.6 trillion budget deficit. Experts have blamed the continuous decline in reserves on three factors: increased dollar supply by the CBN to the foreign exchange market, instability in the nation’s securities and exchange market, and the coming general elections in the country.

Those who spoke with LEADERSHIP Sunday on the development at the weekend expressed worry that the situation could have negative implications on the fragile growth of the economy and consumer demand.

They said the decline in the external reserves would persist in the short term as demand for the green back grows amid the continued intervention of CBN in order to curtail the pressure on the naira at both the I&E and BDC segments as well as the expected increased demand by portfolio investors who have been reported to be leaving the country ahead of the 2019 general elections.

Transactions on the floor of the equities reportedly took a bearish direction last week, with most highly capitalised securities not left out in the price nosedive, a development that forced market capitalisation to lose by about N4 billion in the weeklong trading. By the close of business on Friday, the stock market had fallen further by 0.88 per cent amid sustained profit taking activity.

The All–Share Index shed 304.15 absolute points, representing a decline of 0.88 per cent to close at 34,110.22 points. Also, the market capitalisation declined by N111 billion to close at N12.453 trillion. The fall was ascribed to profit-taking by investors or shareholders. LEADERSHIP Sunday reports that Nigeria operates a relatively regulated foreign exchange regime.

The CBN had intensified injection of hard currencies into the forex market since it signed a currency swap deal with the Peoples Bank of China to ease pressure on the Nigerian foreign exchange market. On Friday, the Central Bank injected the sum $303.91 million into the interbank retail Secondary Market Intervention Sales.

This is in addition to the sale of CNY 46.58 million in the spot and short-tenored forwards. The director, Corporate Communications at the CBN, Mr. Isaac Okorafor, said the releases were for the payment of Renminbi denominated Letters of Credit for agriculture and raw materials. He added that the sales in the Chinese Yuan were through a combination of spot and short-tenored forwards, arising from bids received from authorised dealers.

Read More at: https://leadership.ng/2018/09/09/foreign-reserves-decline-by-2-3bn-in-11-weeks/

APC is working

engineerboat:


There are concerns over the steady decline of Nigeria’s foreign reserves since the last three months despite the rise in oil prices and accruals from foreign bonds issuance.

Exclusive findings by LEADERSHIP Sunday showed that the reserves recorded a huge decline from $47,787,183,153 billion where it was on June 22, 2018 to a “worrying” point of $45,468,258,469 billion on Thursday, September 6.

The reserves took a bullish peak between May 18 – when it was $47.799 billion, and June 21 – when it had the last high figure of $47,784,255,384 billion, according to data obtained from the Central Bank of Nigeria (CBN). Apart from oil which accounts for about 80 per cent of Nigeria’s foreign reserves, the federal government is also hoping to borrow N849 billion (denomination in dollars) from the foreign market to finance the N1.6 trillion budget deficit. Experts have blamed the continuous decline in reserves on three factors: increased dollar supply by the CBN to the foreign exchange market, instability in the nation’s securities and exchange market, and the coming general elections in the country.

Those who spoke with LEADERSHIP Sunday on the development at the weekend expressed worry that the situation could have negative implications on the fragile growth of the economy and consumer demand.

They said the decline in the external reserves would persist in the short term as demand for the green back grows amid the continued intervention of CBN in order to curtail the pressure on the naira at both the I&E and BDC segments as well as the expected increased demand by portfolio investors who have been reported to be leaving the country ahead of the 2019 general elections.

Transactions on the floor of the equities reportedly took a bearish direction last week, with most highly capitalised securities not left out in the price nosedive, a development that forced market capitalisation to lose by about N4 billion in the weeklong trading. By the close of business on Friday, the stock market had fallen further by 0.88 per cent amid sustained profit taking activity.

The All–Share Index shed 304.15 absolute points, representing a decline of 0.88 per cent to close at 34,110.22 points. Also, the market capitalisation declined by N111 billion to close at N12.453 trillion. The fall was ascribed to profit-taking by investors or shareholders. LEADERSHIP Sunday reports that Nigeria operates a relatively regulated foreign exchange regime.

The CBN had intensified injection of hard currencies into the forex market since it signed a currency swap deal with the Peoples Bank of China to ease pressure on the Nigerian foreign exchange market. On Friday, the Central Bank injected the sum $303.91 million into the interbank retail Secondary Market Intervention Sales.

This is in addition to the sale of CNY 46.58 million in the spot and short-tenored forwards. The director, Corporate Communications at the CBN, Mr. Isaac Okorafor, said the releases were for the payment of Renminbi denominated Letters of Credit for agriculture and raw materials. He added that the sales in the Chinese Yuan were through a combination of spot and short-tenored forwards, arising from bids received from authorised dealers.

Read More at: https://leadership.ng/2018/09/09/foreign-reserves-decline-by-2-3bn-in-11-weeks/

ANY VERIFIABLE JUSTIFICATION FOR THAT REDUCTION ?

Mhen... the thievery of Buhari led govt keeps progressing geometrically....

overall90:
Okay now.
the same reserve they are totting as one of their achievement.

It was not an achievement while government was building it up. Now that it's going down, Buhari must take the stick for it. Why are you wailers like this?

dukie25:
Mohammandu Buhari and Yusuf Buhari are stacking up. I hope the next president don't meet an empty Treasury.

Jokerman:
Mhen... the thievery of Buhari led govt keeps progressing geometrically....

Crude oil sold averagely for over $100 all through Jonathan's government and not a single kobo was added to the foreign reserve. Instead, what he inherited from Yat'adua were squandered. Buhari met the reserve at around $30billion and has build it up to over $45billion despite oil averaging at around $50 for the past three years but Buhari is the problem. Again I ask, why are you wailers like this?

Ok

,

Reserve is now declining when the crude oil price is increasing with no militant activity and when government is on borrowing spree. Anyone can sense what is going.
The corrupt Aso rockers, are on it again

Arrest Buhari now !!!! He is a criminal .

Snake has swallowed this one again.....this Buhari regime is nothing but a monumental plague.

Looting in high places

FarahAideed:
Arrest Buhari now !!!! He is a criminal .

A strong face criminal for that matter.

Political squandering of foreign reserve has started. Nothing changes..

Still the same sets of rogue.

We will keep on praying.... God will hear us.

Sai lifeless one

Buhari, Buhari, Buhari. How many times did I call you now? You see yourself?

seunmsg:


It was not an achievement while government was building it up. Now that it's going down, Buhari must take the stick for it. Why are you wailers like this?




Crude oil sold averagely for over $100 all through Jonathan's government and not a single kobo was added to the foreign reserve. Instead, what he inherited from Yat'adua were squandered. Buhari met the reserve at around $30billion and has build it up to over $45billion despite oil averaging at around $50 for the past three years but Buhari is the problem. Again I ask, why are you wailers like this?

Myndd44 Seun Lalasticlala...is rule 2 dead ? I have been banned before for using the word zombie and yet this character is being allowed to use the word wailed to bully others for their opinion...

Let me repeat myself again. By d tym dis ppl are thru with us, we will b looking for both d National cake, d baker of d cake and d bakery

Lok

Nice stats - Can you please provide data to show figures you quoted

seunmsg:


It was not an achievement while government was building it up. Now that it's going down, Buhari must take the stick for it. Why are you wailers like this?




Crude oil sold averagely for over $100 all through Jonathan's government and not a single kobo was added to the foreign reserve. Instead, what he inherited from Yat'adua were squandered. Buhari met the reserve at around $30billion and has build it up to over $45billion despite oil averaging at around $50 for the past three years but Buhari is the problem. Again I ask, why are you wailers like this?

since they have been taking the glory for the previous increase....Lets see if they will take responsibility for this

gare:


ANY VERIFIABLE JUSTIFICATION FOR THAT REDUCTION ?

Perhaps ATM dispense error. They will return it later.

seunmsg:


It was not an achievement while government was building it up. Now that it's going down, Buhari must take the stick for it. Why are you wailers like this?




Crude oil sold averagely for over $100 all through Jonathan's government and not a single kobo was added to the foreign reserve. Instead, what he inherited from Yat'adua were squandered. Buhari met the reserve at around $30billion and has build it up to over $45billion despite oil averaging at around $50 for the past three years but Buhari is the problem. Again I ask, why are you wailers like this?

Only politicians say this. No Academic or Finance professional will posit this.

Please show me how you arrive at your average price for each administration. Show me also a year by year graph showing the foreign reserves value each year, average crude oil price per year & average Usd exchange rate per year. You will clearly see the result of your statement. Let the current administration fix our exchange rate back to the last time we had Average $70 crude oil price like we have this year & then see what value you will get on the foreign reserve values.

dukie25:
Mohammandu Buhari and Yusuf Buhari are stacking up. I hope the next president don't meet an empty Treasury.

You think foreign reserves are money you can steal?

Lol and people like this call buhari dullard

Despite increasing Oil price, Our Foreign Reserve is declining.

They should kukuma sell this country off abeg.

seunmsg:


It was not an achievement while government was building it up. Now that it's going down, Buhari must take the stick for it. Why are you wailers like this?




Crude oil sold averagely for over $100 all through Jonathan's government and not a single kobo was added to the foreign reserve. Instead, what he inherited from Yat'adua were squandered. Buhari met the reserve at around $30billion and has build it up to over $45billion despite oil averaging at around $50 for the past three years but Buhari is the problem. Again I ask, why are you wailers like this?

Stop being a pathetic liar!