Nigeria’s dollar reserves edged up by $140.90 million or 0.40% between 1st and 17th September, data from the central bank’s website showed on Monday.
The current account balance, which shows the difference between the country’s import and export value as well as inflow and outflow of funds, jumped to $35.81 billion from $35.67 billion as international saw measured recovery after governments began to relax lockdown measures and lift economic curbs imposed to contain the coronavirus spread.
In the period from 20th to 27th August, the reserves expanded from $35.59 billion to $35.66 billion, adding $65 million.
They, however, had however tightened by as much $278.92 million between 29th July and 19th August, falling from $35.87 billion to $35.59 billion until they found rebound.
The external sector of Africa’s biggest economy had been perpetually susceptible to headwinds and supply chain disruptions from the pandemic with sweeping implications for performance, the Central Bank of Nigeria (CBN) said in its economic report for May.
“Aggregate foreign exchange inflow, capital importation and external reserves of the Nigerian economy declined by 43.2 per cent, 21 per cent and 0.7 per cent to $5.52bn, $0.25bn and 36.19bn in May 2020, below their respective levels in the preceding month.
“However, the trade sector recorded a surplus of $0.10bn due to the significant contraction in imports.
“The average exchange rate at the inter-bank, the Bureau de Change segment, and the Investors and Exporters window were N361.00/$, N443.33/$ and N386.25/$, respectively, in the review month.”
The apex bank similarly disclosed at its last Monetary Policy Committee the exchange rates’ vulnerability to shocks from erratic oil prices.
The Nigerian economy, 90% of whose foreign exchange earnings come from crude oil, will have its macroeconomic aggregates including capital inflows, balance of payments, domestic revenue, exchange rate, foreign exchange earnings, external reserves and price formation influenced by oil price trends, the CBN said.