…As Egypt, South Africa, Ghana lead in reserves per capita
Nigeria’s external reserves plunged to $35.633 billion despite the strong run of oil price, with the country shedding $565 million.
Besides, the country also queued behind Egypt, South Africa, Ghana in reserves per capita.
Within two weeks, the external reserves fell from $36.198 billion reported on February 1, 2020, to $35.633 billion as of February 15, plunging beyond the $36.34 billion of January 26, which was when the decline started.
According to figures from the Central Bank of Nigeria (CBN), the country’s external reserves had begun the year at $35.65 billion, appreciating to $36.52 billion as of January 25, 2020.
Rise in crude oil prices, partial global economic recovery amid optimism over the discovery and distributions of COVID-19 vaccines by most developed economies, had been the reason CBN Governor, Mr. Godwin Emefiele, gave for the four weeks boost in external reserves in January.
The CBN has now attributed the fall in external reserves in the first two weeks of February to lower foreign exchange receipts, as well as interventions made to stabilise the exchange rate.
This means despite the rise in crude oil price, currently at $64.59 – beyond the 2021 budget benchmark of $40 – and the continuous vaccination of persons amid full economic activities, Nigeria’s external reserves is unable to withstand government interventions.
Nigeria’s reserve per capita is lower than Egypt, South Africa and Angola, all of which have higher reserves per capita. At a time Nigeria’s reserve per capita fell, Egypt’s rose.
Nigeria’s reserves per capita fell to $169.5, below the $172.60 reported in October 2020, at the same time Egypt’s reserves per capita increased to $342.36, as against the $338.92 in October 2020.
Meanwhile, South Africa’s reserves per capita is $725.49, higher than Nigeria’s figure, while Angola also stayed above Africa’s largest economy with $461.32. countries.
– Agency Report