Foreign Reserves See Increase Amidst Borrowings

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After a persistent decline, Nigeria’s gross foreign currency reserves see a marked increase to $38.18 billion as scarce dollar inflow eased due to positive demand that keeps the global prices of crude oil stable for a large part of the year. Also, the improved dollar inflow was supported by $4 billion from the Eurobond raised by the Debt Management Office.
Though crude oil supply has been under pressure following technical issues and Shell force majeure, Nigeria’s oil minister said the country has made move to increase output and deliver on the Organisation of the Petroleum Exporting Countries (OPEC) quota.
Nigeria’s external reserves could close higher at $40 billion in 2021 due to expected inflow from oil and government borrowings, though the downside remains the foreign investors’ backlog of foreign currencies meant to be repatriated