Nigeria’s external reserves have risen by $1.774 billion in 17 days since the government partially relaxed the lockdown in the country.
Before the rise, the external reserves had consistently dropped due to the fallout of the slide in crude oil prices, a revenue source representing over 90% of Nigeria’s foreign exchange earnings.
When the lockdown was partially eased on May 4, the reserves were at $33.892 billion, the Central Bank of Nigeria data revealed.
According to the data, the reserves grew by $1.774 billion between May 4 and Wednesday, May 20 to hit $35.7 billion, representing a 5.23% increase in the 17- day period.
The International Monetary Fund had given the Federal Government a $3.4 billion loan to mitigate the impact of the coronavirus and boost the country’s balance of payment needs.
The Washington based lender said, “The IMF financial support will help limit the decline in external reserves and provide financing to the budget for targeted and temporary spending increases aimed at containing and mitigating the economic impact of the pandemic and of the sharp fall in international oil prices.”
“These shocks have created large external and financing needs for 2020. Additional declines in oil prices and more protracted containment measures would seriously affect the real and financial sectors and strain the country’s financing,” the IMF added