Forex reserves at 21 months high as Naira falls

Channels Television  
Updated May 17, 2012

Latest figures from the Central Bank of Nigeria (CBN) show that the country’s foreign exchange reserves are at their highest in 21-months rising to $37.02 billion by May 14, from $36.66 billion at the end of last month.

Forex reserves were at $33.94 billion a year ago.

Naira falls to 2-mth low

Meanwhile the Naira retreated to a three- month low against the dollar on bets that a rising inflation rate and a decline in oil prices would weigh on its value.

The currency declined 0.4 percent to 158.90 per dollar its weakest on a closing basis since February 14, 2012.

The Naira had traded around the N157.10-N157.90 to the dollar band for the better part of the last two months on the impact of dollar sales by oil companies and offshore investors who are investing in the nation’s short-dated debt notes.

The local unit remains within the Central bank’s 150-160 target band.

On the official window, the Central bank raised its supply to $200 million and sold at N155.70 to the dollar, compared with $150 million sold at N155.70 to the dollar on Monday.