The nation’s external reserves have risen by $5.15 billion in 2021, to close at $40.52 billion as of 31st December 2021, representing a 14.5% increase when compared to $35.37 billion recorded as of the end of the previous year.
This is according to data obtained from the daily tracker of the Central Bank of Nigeria, (CBN).
The gain recorded in the country’s reserve level is majorly attributed to the $4 billion Eurobond, secured by the Federal Government in September, which saw the reserve surpass $41 billion in October 2021.
Nigeria also secured a $3.35 billion IMF facility under the Special Drawing Rights in the review year, which also served as a boost for the reserves. The external reserve has been a major buffer for the Central Bank in defending the country’s exchange rate, by intervening in the official Investors and Exporters window.
The nation’s foreign reserve had gained $5.99 billion in October, however, in November, the reserve lost $611.01 million in value as against the previous month’s gain and a $2.76 million gain in September 2021. In December 2021, the reserve dipped by $66.17 million, putting the annual gain at $5.15 billion.
Nigeria’s reserve has declined in recent months as the Central Bank continues to intervene in the official forex market in order to stabilise the local currency, particularly, at a time when the nation’s currency is highly volatile at the black market.