Growing reserves positive outlook for Nigeria-Expert

Okurounmu, a former Director, Research Department, Central Bank of Nigeria (CBN), made this known in an interview with the News Agency of Nigeria (NAN) in Lagos.

The CBN had, on March 9, announced that the reserves stood at $30 billion with an increase of between 2.30 and 2.75 per cent day-on-day since Jan. 5.

The last time the reserves crossed the $30 billion  mark was July 2015 and went as high as $31.63 billion  in August before it declined.

The expert expressed optimism that the increase in the foreign exchange reserves would boost investors’ confidence, particularly in generating portfolio investment.

He said that the accumulation of reserves served as a cover against external shocks like the volatility in the international oil market.

Okurounmu attributed the successful Euro-bond sale to the investors’ confidence which was hinged in the fact that the nation’s foreign exchange reserves were adequately enough due to high return on investment.

He cited countries like China and Saudi Arabia as countries that had accumulated up to three trillion dollars and $500 billion  and still ensuring that they grew their reserves further.

The expert said the foreign exchange reserve was for meeting the international finance obligations, including sovereign and commercial debts, financing of imports.

According to him, the increase helps in boosting confidence at the international market with the ability of the country to meet its external obligations.