Latest data released by the Central Bank of Nigeria (CBN) revealed that the nation’s external reserves rose from $35.59bn it was as of August 20 to $35.66bn on August 27.
This indicates an increase of $70m within a week.
Earlier, the reserves fell by $278.91m from $35.87bn on July 29 to $35.59bn on August 19.
The apex bank, in its monthly economic report for the month of April, said the country’s foreign reserves increased from $33.69bn at the end of March to $36.46bn at the end of April 2020, reflecting the receipt of the proceeds of the International Monetary Fund’s Rapid Financing Instrument of $3.4bn.
During the last Monetary Policy Committee (MPC) meeting, the CBN had explained that Nigeria’s exchange rate was still affected by the instability in the crude oil prices, noting that it would continue to affect the country’s macroeconomic aggregates.
The aggregates included domestic revenue, foreign exchange earnings, exchange rate development, price formation, capital inflows, external reserves, and balance of payments position.
The effect of the continued lockdown of major economies and restrictions on travel and trade, according to the MPC, will continue to be felt by the Nigerian economy through the short supply of essential imports; rise in inflation through high import prices and exchange rate depreciation; and impact of continued uncertainties and volatility of the oil market on macroeconomic stability.
The apex bank Governor, Godwin Emefiele during the meeting reiterated the need for the government to diversify the economy and reduce its reliance on oil revenue.