Nigeria’s Foreign Reserves Raise to $34.67bln

Channels Television  
Updated February 6, 2012

Nigeria’s foreign exchange reserves rose to $34.67 billion on February 1, their highest level in four and half months, central bank data showed on Friday, raising hopes of a more stable exchange rate on the naira.

Nigeria's Foreign Reserves Raise to $34.67bln

The figure was up on the $32.98 billion of forex reserves that Africa’s top energy producer had at the start of last month, and also higher than the $33.16 billion it had at this time a year ago.

Strong demand for the dollar on the domestic market has piled pressure on local currency the middle of since last year, eating into the forex reserves of Africa’s second biggest economy as the central bank intervened to prop it up.

The bank said outlook for oil prices in the short-term suggested that forex reserves would continue to recover.

Forex reserves at current level could finance more than 6 months of imports of goods and services, the central bank said.