Chinazor Megbolu |
The Central Bank of Nigeria (CBN) has disclosed that the country’s foreign reserve has risen to $36.30 billion as of January 14, 2021, showing a profit of $930 million in 10 days.
The apex bank in the report said the new figures increased from about $35.37 billion recorded as of December 31, 2020.
The increase, it reported, could be as a result of the recent rise in the prices of crude oil in the international market, which traded at $55 a barrel last week.
A country’s foreign reserve is cash and other reserve assets held by a central bank that is primarily available to balance payments of the country, influence the foreign exchange rate of its currency, and to maintain confidence in financial markets.
The rise recorded in the reserve will help for a stable naira across forex markets, thereby saving the nation’s economy.
Recall that last Friday, the Naira remained stable against the dollar leading to the Investors and Exporters (I&E) window, closing at N394.67/$1.
There was also an indication that the reserve and the country’s 2020 budget suffered severe pressure since the crash in oil prices due to some crises, which pushed the federal government on the path of borrowing.
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