Foreign reserves fall to $32.3bn

Posted by admin Headlines Tuesday, September 6th, 2011

The foreign exchange reserves fell to $32.3 billion by September 2, the same level they were on June 24, and down from a six-month high in August, according to the Central Bank of Nigeria (CBN).

The foreign reserves peaked at $35.9 billion on August 8, its highest in six months, but fell to $32.92 billion at the close of last month.

The forex reserves were also lower than a year ago, when they stood at $36.01 billion.

Meanwhile, the apex bank has finalised arrangements to diversify its external reserves holdings by including the Chinese Renminbi (RMB) to the existing currency mix of United States Dollars (USD), the Euro (EUR) and the British Pound Sterling (GBP).

According to a statement from CBN signed by the Head, Corporate Affairs, Mohammed Abdullahi, the decision was taken after due consultations with the Federal Government and other stakeholders in the country, adding that the apex bank had gone ahead to engage the Chinese financial regulatory authorities with a view to building strategic and mutually beneficial relationships with key Chinese financial institutions.

“Given the growing economic importance of China in the world, and the increasing trade flows between the two countries, the CBN initiative is expected to secure a strategic advantage for Nigeria in its economic and trade relationship with the People’s Republic of China,”the statement declared.

It stated further that in order to strengthen collaboration between the monetary authorities of the two countries, the CBN, on Monday, in Beijing, signed a Memorandum of Understanding (MoU) with the People’s Bank of China (PBoC) to foster greater cooperation in various areas of central banking. Governor Zhou Xiao Chuan signed on behalf of the PBoC while Mallam Sanusi Lamido Sanusi signed on behalf of the CBN. The signing ceremony was witnessed by His Excellency Alhaji Aminu Wali, Nigeria’s Ambassador to the People’s Republic of China and Mr Tunde Lemo, Deputy Governor (operations) of the CBN.

The statement noted that the current move by the apex bank to diversify the nation’s external reserves was consistent with the Transformation Agenda of President Jonathan.

-Sunwp_posts