All eyes are on the Central Bank of Nigeria (CBN) for the release of the latest foreign exchange reserve figures. The apex bank is yet to update the most recent figures on its website for over two weeks, the last being August 18 2017.
The external reserves data is updated nearly every day. The most recent figure from the CBN website, put the country’s reserves at $31.5 billion.
The apex bank has spent about $972 million defending the naira so far this month, but the rate has continued to dip due to demand for foreign exchange for summer trips and school fees.
Higher reserves could send positive signals to foreign investors, especially those who are still nervous about investing in the country.
Lower reserves on the other hand could imply that the CBN is burning more cash than it is making, signalling that there could be pressure on the exchange rate in the coming weeks.
A total of $175 million was sold by CBN last week out of which $100 million was sold to the wholesale market. About $50 million was sold to SME’s while $45 million was sold to banks to settle invisible transactions. Invisible transactions include school fees, Personal Travel Allowance (PTA), Basic Travel Allowance (BTA) and Medicals.
The Naira depreciated by 10 kobo opening the week at N305.70 and closing at N305.80 at the CBN official window. At the NAFEX window, the Naira appreciated by 1.23% opening at N360.66 last Monday and closing at N359.25 on Friday. Parallel markets remained flat during the week closing at N370.
