Nigeria's external reserves are set to hit six months high of $45 billion before the end of this month as foreign portfolio investors, FPIs, sustained dollar injection in a bid to take advantage of the double digit interest rate on Nigeria’s fixed income instruments.

Last week the reserves maintained upward trend for the sixth consecutive week. Data from the Central Bank of Nigeria, CBN, showed that the reserves rose to $44.722 billion as at Thursday, April 11, from $44.683 billion on Thursday April 4, implying weekly increase of $39 million.

Further analysis showed that the reserves have gained $294 million dollars from $44.428 million since the beginning of the month. With this upward trend expected to continue, the reserves will hit $45 billion before April 30.

This will translate to the highest level of external reserves for the country in six months, specifically since September 18 when the reserves stood at $45.002 billion. After falling persistently for seven months, from peak of $47.989 billion on July 5, 2018, the reserves commenced steady ascent from $41.296 billion on February 28. Since then the reserves have gained $3.43 billion or 8.3 percent.

This sharp gain is driven by increase in crude oil price and huge dollar injection by foreign portfolio investors seeking to take advantage of double digit interest rates on Nigeria’s fixed income instruments, namely treasury bills and FGN bonds, to maximise returns on their investment.

According to FSDH Merchant Bank, “The rise in the external reserves was driven by the significant rise in Foreign Portfolio Investors, FPI, in March and increase in crude oil price. We believe the increase in FPI was as a result of foreign investors’ interest in the Nigerian fixed income market on account of attractive yield and relatively stable exchange rate.”

Financial Vanguard analysis showed that dollar injection by foreign portfolio investors, FPIs, spiked by 363 percent to $7.54 billion dollars in the first quarter of the year, Q1’19 from $1.63 billion in the previous quarter, Q4’18. The highest dollar injection of $4.47 billion by foreign portfolio investors was recorded in March, up by154 percent from $1.75 billion in February. Meanwhile activities in the Investors and Exporters, I&E, foreign exchange window indicate that dollar injection from FPIs is still high though lower than the level recorded in March.

Data from FMDQ showed that $2.1 billion have been traded in the window in the first two weeks of April. This translates to weekly average of $1.05 billion so far in April, down from weekly average of $2.3 billion in March.

https://www.vanguardngr.com/2019/04/external-reserves-to-hit-45bn-as-dollar-inflow-from-fpis-continues/amp/

Beautiful non sense , No responsible father will come and declared he's a billionaire while is children we living in first class poverty . What's the effect of this on a common man , have this changed the fact that Nigeria is the headquarter of poverty in the world ,has this reduced the rate of unemployment in this country , has this reduced the level of inflation in the country . Until any government engaged in things that will have direct positive effect on the common there's nothing to celebrate in this kind of news .

They should first of all sell NNPC the don't ever make profits from any fiscal year. Shame still de catch me to hear that Nigeria is the poverty capital of the World. Biko are we still proud enough to say we are the giant of Africa?

more nonsense talks

Jh

Imagine GEJ was still the president, this external reserve will av become debt, how GEJ manage to deplete the external reserve will the highest oil sale ever is beyond me. Education is not leadership. SMH!

Rubbish

Okay. I just hope this spells something good for the teeming masses!!
Check my signature to make legit income online.
Thank me later.

A nation clutching on straws

Naija is still the poverty capital of the world

Honor10:
Imagine GEJ was still the president, this external reserve will av become debt, how GEJ manage to deplete the external reserve will the highest oil sale ever is beyond me. Education is not leadership. SMH!

What is your debt to GDP or reserve level?

- You debt is currently at $65bn and climbing, the APC knows they can only deceive the illitrates who dont have access to news and figures.

The last election showed that the infomed and elites can not be deceived with misleading headlines.

Those with poverty mentality are looking at the problems while those with wisdom are looking at the sectors the FPIs are landing and tapping into opportunities in that sector.

Just take a look at those complaining. They are blaming Buhari for their poverty. As if they were billionaires before Buhari came.

By the way, do you know that Doyin Okupe is now selling crates of eggs and is also an agent now? Go to twitter and see him hawking his goods there.

nonsense, rubbish and yet so much suffering..... light no dey for how many days now. yeye country

How's it affecting the common Nigerians positively?

Na so we dey hear

Las Las things still hard for the country

This is just stupid.
Like saying oh look, I have 100milliin in my bank account. But suffering and drinking garri day to day.

What is the use of external reserves when Nigeria is becoming worse economically everyday

Wow

We have a good manager

Btw, do good news purged? Me not understanding people ranting above ooo

I no understand. . Please someone should explain to me

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Sai Baba Buhari

Its a gradual process
Nobody can stop us
join in the progress or be left behind

We won't accept it we demand a recount- cownu piglets

To those who criticize saving, it may not make sense to you, but it makes economic sense.

You see, countries keep a lot of savings, regardless of their debt, to attract foreign direct investors (FDI) to their country.

In Economics, the logic is that any country with a huge external reserve is a fertile ground for doing business because they wouldn't tax investors unnecessarily.

Take it to individual businesses, Dangote and co are owning banks huge sums of money, they are repaying the debt and servicing it as well. However, he can comfortably approach any bank, despite that he's owing many banks already, and ask for loans and they will give him.

Why? That's because his net worth is huge...meaning that if he fails to repay the loan, there are many things that he owns which the bank can sell to recover their money.

I am not a Buhari's fan...never...but growing Nigeria's foreign reserves is a wonderful move.

Not a good news for those that are allergic to good news ... Good morning and Sai baba Buhari

How does this shaddy foreign reserve positively affect d common man? . . All na wash

Buhari should use it and go wankoff..
Who get time read this long trash this early monday

Honor10:
Imagine GEJ was still the president, this external reserve will av become debt, how GEJ manage to deplete the external reserve will the highest oil sale ever is beyond me. Education is not leadership. SMH!

Pffffff.....keep blaming GEJ for your failure till kingdom come. brainless