Nigeria’s External Reserves Lose Momentum After July Rally

Nigeria’s external reserves could be heading toward the mid-july trough as it failed to sustain the momentum it started four weeks ago.

The figures have been on a downtrend since August 11 after what appeared like a rally turned out to be a breather from the bearish trend of the past year.

The reserves had risen from an over one-year low when the gross component touched $33.09 billion and the liquid portion estimated at $32.85 billion. Thereafter, a gradual but consistent accretion started, hitting an average of $33.45 billion on august 10 in a fleeting rally.

The figure could only regain 1.5 per cent of its losses when it started a retracement on August 11. The modest rally, which lasted for a month, had raised hope on the outlook of the country’s external reserves.

Last week, the gross reserves closed at $33.52 billion while the liquid (or available) form was $33.24 billion, bringing the average figure to $33.38 billion.