External reserves rise by $930m in two weeks

External reserves rise by $930m in two weeks

The country’s external reserves rose by $930 million from $35.37 billion as of December 31, 2020 to $36.30 billion as of January 14, 2021.

Figures obtained from the Central Bank of Nigeria (CBN) have shown. This is in line with an earlier projection by Fitch Rating that the reserves could hit $42 billion by the end of 2021

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

It said, “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 $6.97 billion, a decrease of 30.7 per cent and 43.6 per cent 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 per cent and 44.7 per cent, respectively, below the levels in the preceding quarter and corresponding quarter of 2019.”

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

Disaggregation of inflow through the bank indicated that oil and non-oil receipts were $2.35 billion and $4.62 billion, respectively

Further analysis of non-oil receipts showed that interbank swaps, other official receipts, and TSA and third-party receipts increased by 255.6 per cent, 40.4 per cent and 6.8 per cent to $1.60 billion, $0.99 billion and $0.95 billion over their respective levels in the second quarter of 2020.

However, foreign exchange purchases, Deposit Money Bank (DMB) cash receipts and unutilised IMTO funds declined by 14.9 per cent, 68.1 per cent and 11.5 per cent to $0.56 billion, $0.10 billion and $0.24 billion, below the levels in the preceding quarter, respectively.