The Central Bank Governor, Godwin Emefiele, assured Nigerians that the foreign reserves statistics will surpass the $42 billion threshold by the middle of next year.
During the France-Nigeria Security and Economic Summit on Wednesday, which was hosted in Paris, Emefiele analyzed Nigeria’s external reserve expectations and macroeconomic factors driving the economic ramifications of FX reserve in the economy.
According to him, “Nigeria’s external reserves are expected to surpass US$42 billion by mid-2022. This is due to the sustained increase in crude oil price, the impact of Eurobond Issuance, and the stable exchange rate condition.”
The reserves, which stood at $34.80 billion in the first quarter of 2021, declined to $33.3 billion in the second quarter, before rising to $36.7 billion in the third quarter. It is estimated to hit about $41.82 at the end of this quarter.
The governor added “Nigeria’s FX reserves has increased to over US$40bn from about US$33.4bn in March 2020 due to inflows from the IMF, Eurobond proceeds, and complemented by CBN’s astute management of the foreign exchange market,”