Nigeria’s external reserves expanded by $732.656 million or 2.1% in the one week period between May 21 and 28, 2020, according to data published Monday by the Central Bank of Nigeria (CBN).
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.
The Minister of Finance, Mrs. Zainab Ahmed, had on May 21, projected the oil-dependent economy would shrink by 8.9% this year, in a worst case scenario, without stimulus.