External reserves, oil price in counter trend

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Oil prices rise on account of JMMC 107% output cut compliance
Oil money

By Babajide Komolafe

 

In spite of the rising trend in the price of crude oil, the nation’s external reserves have fallen by $1.86 billion in seven weeks to $34.66 billion.

The price of crude oil, which accounts for 90 per cent of the nation’s dollar earnings, has been on the upward trend  since November 30th last year, buoyed by production cut by OPEC+.

 

For example, the price of Nigeria’s Bonny Light crude oil rose steadily to $68.19 per barrel last weekend from $46.67 per barrel on November 30th, indicating a 46 percent  percent increase in about three and half months.   

However, data from the Central Bank of Nigeria, CBN, showed a different trend for the nation’s external reserves.

According to the CBN,  the reserves maintained a seven weeks decline to $34.66 billion as at Wednesday last week, from N36.521 billion on January 25, 2021. 

The seven weeks decline followed a five week steady increase in reserves from $34.825 billion on December 17,…



Source: Vanguard Newspaper

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