Following the external reserves accretion, which currently stands at $34.3 billion, Godwin Emefiele, Central Bank of Nigeria (CBN) governor, has expressed hope that Nigeria can attain a foreign reserve position of about US$40 billion by end of 2018.
Emefiele noted that the reserves had recovered significantly from about US$23 billion in October 2016 to over US$34.3 billion as at November 3, 2017.
“The accretion in reserves does not only reflect increased inflow but also our shrewd FX demand management strategy,” he added
He spoke at the 2017 Annual Bankers Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos at the weekend.
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Part of Emefiele’s expectations is to see inflation rate drop to very low double digit or high single digit levels during the next year, barring any unforeseen shocks.
He expressed gladness that the Naira had appreciated from over N500/US$1 to about N360/US$1. While noting that the economy had seen stability in the exchange rate of the naira for over six months, he affirmed that the exchange rate was not only stable, but was also converging across various windows and segments of the market
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According to him, since the establishment of the Import and Export Window, the CBN had recorded about US$10 billion in autonomous inflows through this window alone. According to him, this reflected the effect of the increased transparency which that window accorded the foreign exchange market and its impact of improving investor confidence and business sentiments.
He noted that the import bill had dropped, adding that Nigerias manufacturing and agriculture sectors still had a long way to go if the country were to attain self-sufficiency in those sectors. Nevertheless, he assured that the CBN, on its part, would continue to fine-tune its policies and strategies based on its understanding of evolving developments and supported by in-house technical analysis and simulations. He assured that the CBN would remain proactive in ensuring that the welfare of Nigerians is optimised at any point in time.
Emefiele also expressed hope that the economic recovery would consolidate and that the exchange rate stability currently being witnessed would continue. While expressing hope for even stronger policy coordination, collaboration and cooperation in 2018, he hinted that monetary policy stance could change when the underlying fundamentals become supportive.
Hope Moses-Ashike
