Forex reserves sink to 11-year low BUT oil prices rise to $50 – The Cable

dollar to naira

Nigeria’s foreign exchange reserves have sunk to a new 11-year low, as the oil prices dwindle between $40 to $50 per barrel.

According to data from the Central Bank of Nigeria (CBN), the country’s forex reserves was down to $25,780,765,483 — a value last seen in 2005 under the leadership of Olusegun Obasanjo as president and Charles Soludo as CBN governor.

The plunge in oil prices has led to a corresponding plunge in the Nigerian forex reserves over the past 18 months.

As at Thursday morning, Brent crude, the global benchmark for oil, steadied around $50 per barrel, from about $42 only two weeks ago.

West Texas Intermediate (WTI) or US crude futures were trading at $47.10 a barrel, up 31 cents, on Thursday morning.

The Organisation of Petroleum Exporting Countries (OPEC) basket price also surged from $43.92 on Wednesday to $45.03 a barrel.

The rise in crude oil prices is adjudged to have been driven by talks of output freeze between OPEC and some non-OPEC members.

OPEC members are expected to meet in Algiers, Algeria, in September, to discuss the stability of the oil market, averting oversupply and stabilising prices.