Data from the Central bank of Nigeria shows that the Nation’s foreign reserves have swollen to $25.043 billion. This a plus for our economy.
The present value of the reserves improved from $23.957 billion by November 2, 2016, to its current figure.
Specifically, there was a lump deposit of about $825, 149,623 to Nigeria’s foreign reserves in November.
One CBN source attributed the growth in the external reserves to an increase in the level of exports by the country.
“There are several reasons for the uptick in reserves.
“Exports may have been relatively stable in view of the relative calm in oil producing regions, like the Niger Delta.
“What it means is that for some time it hasn’t happened.
“Secondly, the rate at which the reserves had been draining has been reduced.
“Before now, Nigeria has not been intervening very much apart from the forwards we have done.
“What it also means is that the forwards have helped to reduce the demands.
“It is also a sign that some inflows are trickling in by way of people bringing in money.
“There’s also the seasonal angle to it- during Christmas when people come home, they send resources as well,” the source said.
An IMF report indicates that a sharp decline in imports contributed to a modest recovery in Nigeria’s external current account balance.
The report had shown that Nigeria’s exports declined by 14% in the first half of 2016.
It also revealed that imports fell more than proportionately by 25% in the first half of this year.
Also, our foreign trade report shows that the country’s total value of merchandise trade rose to N4.72 trillion in the third quarter (Q3) of 2016.
This represents an increase of 16.3%, or N661.5 billion, compared to N4.06 trillion recorded in the preceding quarter of the year.
If the trend continues, Nigeria may well crawl her out of recession in 2017.