$36.4b foreign reserves keep naira stable at N480/$

Nigeria’s currency, the naira, has stayed stable at the official and parallel markets, with the foreign exchange (forex) reserves standing at $36.4 billion, according to data from the Central Bank of Nigeria (CBN) website.

The naira’s stability at the same exchange rate for the past four days ignites hope that previous volatility in the market is being subdued by rising foreign reserves.

The naira on Tuesday exchanged at N480 to a dollar at the parallel market and N379 to a dollar at the official market, same rates since January 28.

The foreign reserves stood at $36.4 billion as at January 25 and have remained upbeat as the CBN continued to monitor dollar remittances by International Money Transfer Operators (IMTOs) and export proceeds.

The CBN also noted the increase in the level of external reserves, which stood at $36.23 billion as at January, 21 compared with $34.94 billion at the end of November 2020.

This reflected improvements in crude oil prices and partial global economic recovery amid optimism over the discovery and distributions of COVID-19 vaccines by most developed economies.

The regulator insists its policy mandating IMTOs to pay Diaspora remittances beneficiaries in dollars is being flouted.

CBN Director, Trade and Exchange Department, O.S Nnaji, said the apex bank will blacklist and close bank accounts of unlicensed companies facilitating diaspora remittances into the country.

Analysts noted the need to continue to explore avenues to improve inflow from sources such as the IMTO, diaspora remittances and non-oil export promotion, given the current trajectory of crude oil prices.