Foreign reserves hit $35bn

THE nation’s foreign exchange reserves rose just over four per cent to $35.03 billion on February. 13, their highest in six months.

Reserves a year ago stood at $34.44 billion.

Reserves had been declining for the last three years despite record high prices for oil, the source of around 95 per cent of the nation’s foreign exchange earnings.

But some of the broader pressure on the naira has eased, allowing the Central Bank to spend less of its reserves propping up the currency while global prices for crude surge towards $120 a barrel.

Analysts believe the reserves will continue to appreciate as the current measures put in place by the economic managers begin to manifest fully.

It will be recalled that the declining reserves had been a source of worry as the CBN was using it to defend the naira to avoid volatility at the foreign exchange market.