Nigerian forex reserves hit more than 1-year high
LAGOS (Reuters) – Nigeria’s foreign exchange reserves rose by 2.96 percent on the month to $36.52 billion on April 27, the highest level in more than one year, data from the central bank released on Monday showed.
Forex reserves in Africa’s top oil producer stood at $35.42 billion a month earlier and were at $33.09 billion a year ago.
Currency traders said rising dollar flows from offshore investors buying local debt and large dollar sales by local units of multinational oil companies had washed onto the market in the past few weeks.
That has taken pressure off the official supply window for the dollar by the central bank, allowing reserves to recover in Africa’s second biggest economy.
Nigeria relies on crude exports for more than 95 percent of its foreign exchange earnings. Investors watch reserve data closely to gauge the strength of its defences against a potential dip in oil prices.
Analysts say $36 billion is roughly enough to cover import bills for six months.