Nigeria’s Foreign Reserves At Two Year High As It Hits $45.68bn

Nigeria’s external reserves witnessed an increase of $3.01 billion to stand at a current level of $45.68 billion – the highest in more than two years.

Governor of  Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi, disclosed this at the 46th annual dinner of Chartered Institute of Bankers of Nigeria (CIBN), weekend, in Lagos.

According to Sanusi, “as at close of business today (Friday), our foreign reserves stand at $45.68 billion. We have kept exchange rate stable within our announced band of N155 +or – three per cent.”

The external reserves as at the end of October were $42.67 billion. This implies that the reserves rose by $3.01 billion or 0.7 per cent between October 31 and November 16.

Further analysis showed that the reserves had been rising persistently since August 6 when it recorded the last decline from  $36.579 billion to $36.408 billion. Also when compared with its level of $38.59 billion on August 10, 2010, the new level of  $45.68 billion represents the highest level of the reserves in 27 months.

Sanusi, in his keynote address, said the increase in external reserves was necessary to protect the economy from external shocks arising from decline in crude oil prices and emphasised the need for fiscal restraint and fiscal consolidation.

He said: “It is important not to be complacent and it is important to recognise that there are dark clouds in the horizon and it is extremely important to start building and continue building the fiscal buffers, go into a period of strong restraints and serious fiscal restraints and consolidation. We must continue to build up the external reserves and protect the economy from external shocks to oil prices and focus on the strength and resilience of the banking system.”

Speaking further he said, “We now have high reserves of more than a two-year high, stable exchange rates, relatively benign inflation, but obviously, very high interest rates and lending rates in the money market.”