Nigeria’s foreign reserve has increased to $36.57 billion as of May 5, the latest figures by the Central Bank of Nigeria (CBN) has revealed.
The new figures rose from about $33.42 billion recorded as of April 29.
The rise may be attributed to the recent rise in prices of crude oil in the international market.
According to the latest data, the rise shows a gain of $3.15 billion dollars in 33 days.
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 defend the naira from devaluation, thereby saving the Nigerian economy.
Weeks ago, the naira traded as high as N476 to $1 but recently, in Nigeria’s parallel market, naira sells for 447 to $1.
Meanwhile, the Brent is currently trading at $40.86 per barrel, and the Nigerian Bonny light crude trading at $38.27 per barrel, both selling at the highest price in over two months.
If the increase in the oil market continues, the Nigeria foreign reserve is set for a big turn around as about 90 per cent of the country’s foreign earnings is from crude oil sales.
The reserve and the Nigerian 2020 budget have suffered severe pressure since the crash in oil prices due to crisis caused globally by the noel coronavirus.