Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has projected that Nigeria’s foreign reserves will exceed the $42 billion threshold by mid 2022.
He stated this in a presentation at the France-Nigeria Security and Economic Summit, in Paris, France, on Wednesday.
He said the projected increase was due to sustained increase in crude oil price, the impact of Eurobond Issuance, and the stable exchange rate condition.
In the first quarter of this year, the country’s external reserve was $34.80 billion but dipped to $33.3 billion in the second quarter, then rose to $36.7 billion in the third quarter and is projected to hit about $41.82 at the end of the fourth quarter.
Emefiele attributed the growth to inflows from the IMF, Eurobond proceeds, and complemented by CBN’s astute management of the foreign exchange market.
According to him, FX daily turnover at the Investors and Exporters Window averaged $157. 4 million in the third quarter and is projected to hit $209.3 million at the close of the year.
He further stated that the average daily turnover had fallen to as low as $44.1 million at the peak of the COVID-19 pandemic in the second quarter of 2020.
“The exchange rate continued to experience significant pressure in the various windows. Accordingly, the CBN adjusted the official exchange rate from N306/US$ to N405/US$. Today, the exchange rate at the I&E is hovering around N412/US$1,” Emefiele added.
