Nigeria’s external reserves expanded by $732.656 million or 2.1% in the one week period between 21st to 28th May 2020, data published by the Central Bank of Nigeria (CBN) on Monday have revealed.
In between the periods, the international reserves grew from $35.765 billion to $36.499 billion, marking the fourth straight week it would rise in a row.
Nigeria’s external reserves have maintained an upward trend since the end of April when the International Monetary Fund disbursed a credit facility of $3.46 billion to the country under its Rapid Finance Instrument Facility “to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19.”
The reserves, which contracted by $11.75 billion or 26% within ten months from 10th June 2019 when the balance was $45.175 billion, began an upward trend from $33.427 billion on 29th April.
Between then and 28th May, it posted a $3.072 billion appreciation translating to 9.1% growth.
Africa’s largest economy has in recent months seen a substantial plunge in crude oil receipts, which account for around 90% of its foreign exchange earnings and roughly 60% of government’s revenue on account of record oil crash at the international market.
Finance Minister Zainab Ahmed on 21st May projected the oil-dependent economy would shrink by 8.9% this year in a worst case scenario without stimulus.