BY FELIX OLOYEDE

The country’s foreign exchange reserves have risen marginally by 1.05 percent month-on-month to $29.80 billion by May 15.

According to data from the Central Bank of Nigeria (CBN), the reserves which stood at $29.49 billion at the middle of April moved to $29.53billion at the end of the month.

The reserves were however down 20.6 percent year-on-year, compared with $37.54 billion in the same period a year ago.

The country’s foreign reserve has taken a seriously dip since the fall in global oil price since July 2014.

And owing to the fact the country depends on oil for 90 per cent of its forex earnings, the naira has lost over 18 per cent within this period. 

In response to the ailing naira, the CBN spent several billions from the country’s foreign reserve depending the nation’s currency.

When the naira failed to response positively to CBN efforts at strengthening the country’s currency, the apex bank had to inFebruary 18 shut the Retail Dutch Auction System (rDAS) and Wholesale Dutch Auction System (wDAS), citing unwholesome practices in the forex market as the reason for its action.

Some analysts attributed the marginal rise in the country’s foreign reserve within April and May to the little upward movement of global oil prices.

Crude oil traded at $57.87 yesterday, falling by 1.58 per cent from the amount it sold the previous day.

The naira yesterday exchanged N199.04/$1 at the interbank market and N220/$1 at the parallel market.