The Central Bank of Nigeria (CBN) has managed to stop the bleeding in external reserves as gross dollar reserves hit a one month high of $34.08 billion as at May 06, 2020.
The last time Nigeria’s gross dollar reserves were this high was on April 09, 2020 when it was at $34.3 billion, data from the CBN website shows.
The CBN dollar reserves are however down $4.42 billion or some 13 percent since the beginning of 2020, as foreign investors sold naira denominated assets and pulled their funds from the country.
A slow pick up in reserves accretion may indicate that the pressure on the local currency may ease in the short term as oil prices rebound from multi year lows.
Nigeria gets almost 95 percent of its foreign exchange earnings from the sale of crude oil and has seen its currency come under pressure as oil prices slumped earlier in the year.