![]() In a report, the Organisation of Petroleum Exporting Countries affirmed that Nigeria’s output increased to 1.3 million barrels per day (mbpd) on average in the first quarter of 2023. From non-oil export, Africa’s largest economy attracted lower income after years of overdependence on hydrocarbon sales. ![]() The situation impacted the naira which fell rapidly against the onslaught of foreign currencies with strong economic productivity.Īccretion into Nigeria’s external reserves has weakened significantly the dearth of FX inflows from hydrocarbon sales. Analysts said the size of the FX swap contract is a potential FX outflow from the nation’s foreign reserves, with the possibility of bringing the balance below $30 billion.Įarly in 2022, Nigeria experience a lower foreign currency buffer which reduced the apex bank’s ability to support the local currency in the FX market. With FX Swap, Nigeria is under obligation to make good the agreements. ![]() In addition to other foreign currencies obligations, external reserves may be significantly low, analysts said. The estimated figure released by Fitch Ratings suggests external reserves include at least $10 billion that belongs to a counterparty and this also excludes FX backlog. Nigeria’s foreign reserves which printed at $35 billion as of Friday (May 5, 2023) according to data from the Central Bank (CBN) is estimated to include about 30% foreign currency that has been swapped with trading partners. ![]()
0 Comments
Leave a Reply. |