Going by the current trajectory of growth in Nigeria’s foreign reserves, the Governor of the Central Bank of Nigeria, Godwin Emefiele has assured that Nigeria is set to cross $42 billion thresholds in foreign reserves by the second quarter of 2022.
Mr Emefiele said this on Wednesday at the France-Nigeria Security and Economic Summit, in Paris, France.
According to him, “Nigeria’s external reserves are expected to surpass US$42 billion by mid-2022. This is due to the sustained increase in crude oil price, the impact of Eurobond Issuance, and the stable exchange rate condition.”
The reserves which stood at $34.80 billion in the first quarter of 2021, declined to $33.3 billion in the second quarter, before rising to $36.7 billion in the third quarter. It is estimated to hit about $41.82 at the end of this quarter.
“Nigeria’s FX reserves have increased to over US$40bn from about US$33.4bn in March 2020 due to inflows from the IMF, Eurobond proceeds, and complemented by CBN’s astute management of the foreign exchange market,” the governor said.
FX daily turnover at the Investors and Exporters Window, he said, averaged $157. 4 million in the third quarter and is projected to hit $209.3 million at the close of the year.
The CBN boss said that the average daily turnover had fallen to as low as $44.1 million at the peak of the COVID-19 pandemic in the second quarter of 2020.
On the exchange rate, Mr Emefiele, said, “ The exchange rate continued to experience significant pressure in the various windows. Accordingly, the CBN adjusted the official exchange rate from N306/US$ to N405/US$. Today, the exchange rate at the I&E is hovering around N412/US$1.”
The governor revealed that CBN Centre for Economics & Finance was an intervention to develop the human capital needed to build capacity in the financial sector.
“Through this program, the CBN will produce a critical mass of well-educated postgraduate degree holders in the fields of Accounting, Banking and Finance, Business Administration and Economics for the financial services industry, and the Nigerian economy as a whole,” he said.