Nigerian forex reserves fall to $30.49 bln as of May 25

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    Mexican Peso bills are arranged for a photograph with a U.S. one dollar bill in Mexico City, Mexico, on Wednesday, Jan. 27, 2016. Mexico’s peso, the worst performing major currency in 2016, is poised for a rebound by the end of this year, according to its most-accurate forecaster, Sireen Harajli, a strategist for Mizuho Bank Ltd. who was the best analyst for the peso in the fourth quarter, according to a Bloomberg ranking. Photographer: Susana Gonzalez/Bloomberg

    LAGOS May 31 – Nigeria’s foreign exchange reserves fell to $30.49 billion as of May 25, the lowest level since April 18 and down 0.87 percent from a month ago, central bank data showed on Wednesday.

    The forex reserves were up 15.27 percent year-on-year, the data showed.

    Africa’s biggest economy shrank by 1.5 percent in 2016 in its first annual recession in 25 years, hit by a shortage of hard currency and lower revenue from its dominant oil sector as world crude prices remained under pressure.

    The central bank has been intervening on the official market to try to narrow the spread between the official interbank and black markets. It has sold over $4 billion since February, but analysts doubt that this pace can be sustained.

    The reserves of the OPEC member country have grown by $4.4 billion year to date due to recovery in global oil prices and increased production. The reserves stood at $26.09 billion at the beginning of the year and $26.45 billion a year ago.

     

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