Global increase in oil prices boosts Nigeria’s foreign exchange reserves

Nigeria’s foreign exchange reserves records a 10.3 percent gain in 2018, reaching a four-year record high of $43.2 billion on Wednesday following an increase in the price and shipment of oil says the country’s Central Bank of Nigeria.

From a $42.76 billion on March 2nd, the reserves rose to a $43.2 billion on Wednesday, up from its initial $38.77 billion early in the year. The foreign reserves have gained about $3.99 billion.

The recent increase in the CBN coffers follows a global increase in oil prices and the federal government’s $2.5 billion Eurobond sale that attracted over 7.143 rates.

Following the increase, the governor of the Central Bank, Godwin Emefiele, projects that the reserves might hit $60 billion in 2019, if the trend continues.

According to him, the increase in the price and shipment of the country’s biggest foreign-currency earner, oil, improved investor confidence and the CBN could leverage on that to build its reserves to $60 billion over the next 12 to 18 months.“Things are looking up. No one ever thought the price of crude would hit $70 in such a short period of time.” He added.

As at Wednesday, the price of the Organisation of Petroleum Exporting Countries basket of 14 crudes had stood at $63.25 per barrel.