Nigeria's Foreign exchange reserves begin "gradual recovery" - Emefiele

 

 Nigeria's foreign exchange reserves have begun a "gradual recovery" thanks to the central bank's management of dollar demand and the government's effort to plug leakages, central bank Governor Godwin Emefiele said on Wednesday.

Reserves stood at $31.89 billion on July 7, up from $29.1 billion at the end of June but still below $37.3 billion a year ago, Emefiele told lawmakers.

The central bank has spent around $5 billion since January defending the naira, which was hit by last year's plunge in oil prices.

With "the strong efforts of President Muhammadu Buhari ... to plug all leakages, as well as the vigilant demand management of the central bank, we have seen our foreign exchange reserves begin a gradual recovery," he said.

President Buhari has vowed to recover billions of dollars allegedly stolen by officials and restore financial "sanity" in Africa's biggest economy.

Emefiele said the bank's forex policies have led to a "significant stabilisation" in the exchange rate and an improvement in market sentiments.

On Wednesday, stocks fell to a three-month low and the most liquid 5-year bond yield rose close to March levels of 15.5 percent, as investors fretted over the impact of dollar shortages on the currency market.