Although the Central Bank of Nigeria (CBN) has been consistent in its supply of dollars at the foreign exchange market at both the interbank and bureau de change end of the markets, the external reserves of the country has continued to rise, growing by $109.66 million or 0.36 per cent in the first 12 days of April.
The external reserves which was at $30.307 billion as at the beginning of the month had risen to $30.416 billion as at April 12. 2017, the latest data provided by the CBN on its website.
The external reserves has since the beginning of the year accrued $4.322 billion, an increase of 16.6 per cent when compared to $26.094 billion which it was at the beginning of the year. Dollar accretion of the country has been on the rise since last year as oil prices at the global market which had dropped to less than $40 per barrel had improved and remained in the borders of $50-$55 per barrel.
Also the relative peace in the oil rich Niger Delta region of the county has seen oil production of the county rise from 1.550 million b/d in January to 1.608 million b/d in February according to the Monthly Oil Market Report (MOMR) of the Organization of Petroleum Exporting. Countries (OPEC).
Last week the CBN had sold over $450 million at the interbank market to meet spot, forward and invisibles dollar demand. It also sold $20,000 to each BDC operator in tow tranches in an effort to ensure liquidity at the foreign exchange market.
So far, the apex bank has sold more than $2.5 billion at the foreign. exchange market since it began an increased sale of foreign exchange in February this year.