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External reserves hit $930m in two weeks

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Nigeria’s external reserves rose by $930m from $35.37bn as of December 31, 2020 to $36.30bn as of January 14, 2021.

This was contained in a report released by the Central Bank of Nigeria (CBN) on Sunday, January 17.

The CBN also reported that foreign exchange inflow through the bank in the third quarter of 2020 stood at $6.97bn.

According to the report, “Foreign exchange inflow through the Central Bank of Nigeria decreased in the third quarter of 2020, largely due to a reduction in non-oil inflow.

“During the review period, aggregate foreign exchange inflow through the CBN stood at $6.97bn, a decrease of 30.7 percent and 43.6 percent below the levels in the second quarter of 2020 and the corresponding quarter of 2019, respectively.

“The development was attributed to a decline in both oil and non-oil receipts by 9.7 percent and 44.7 percent, respectively, below the levels in the preceding quarter and the corresponding quarter of 2019.”

The central bank explained that the decrease in non-oil receipts followed a reversion to normal trend after the one-off IMF facility in the previous quarter, while that of oil receipts was a result of the weak global demand for crude oil, owing to fragile global economic recovery.

According to the apex bank, the disaggregation of inflow through the bank indicated that oil and non-oil receipts were $2.35bn and $4.62bn, respectively.

The report showed further that interbank swaps, other official receipts, and TSA and third-party receipts increased by 255.6 percent, 40.4 percent, and 6.8 percent to $1.60bn, $0.99bn, and $0.95bn over their respective levels in the second quarter of 2020.

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Meanwhile, the foreign exchange purchases, Deposit Money Bank cash receipts, and unutilised IMTO funds declined by 14.9 percent, 68.1 percent, and 11.5 percent to $0.56bn, $0.10bn, and $0.24bn, below the levels in the preceding quarter, respectively.

 

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