Nigeria’s External Reserves Grow By 1.59% In August

Nigeria recorded a monthly gain in its external reserves in August amid news that the countey would be expecting $3.5 billion from the International Monetary fund special drawing rights.

According to data obtained from the Central Bank of Nigeria, Nigeria’s external reserves which opened the month of August at $33.48 billion hit $34.01 billion on August 31, 2021.

The change during the month represents a growth of $533.5 million or 1.59 percent boost in the country’s foreign reserve.

However, the year-to-date change is $1.36 billion a loss when compared to the $35.37 billion in external reserves as of December 31, 2020.

Meanwhile, with recent reports of Nigeria getting $3.35 billion as its share of the International Monetary Fund (IMF) special drawing rights (SDRs) external reserves will move closer to $40 billion.

Managing Director, Financial Derivatives Company Limited, Mr. Bismarck Rewane in its August edition of the FDC Monthly Update, noted that the $3.35billion IMF SDR allocation to increase the external reserves level to about $37billion.

“We expect gross external reserves to grow to over $37 billion upon receipt of the IMF’s SDR credit of $3.35 billion, which is due on August 23. This would increase the CBN’s ability to maintain the currency and lead to greater convergence of the exchange rate around the Investors & Exporter window,” he had said.