Good Morning Nigeria: Some better news on reserves
​Some better news on reserves
Data from the CBN show that official reserves increased marginally by US$40m in March on a 30-day moving average basis to US$27.9bn. Following a sharp decline in January of US$910m, reserves have stabilised over the past six weeks, for which we offer three possible explanations: that fx sales by the CBN slowed, that it plugged some leakages or that it saw a modest rise in its inflows due to the oil price recovery of about US$10/b in recent weeks. Reserves at end-March provided 6.2 months’ cover for annual merchandise imports and 4.4 months when we allow for services. This would constitute adequate cover, were it not for the huge import demand of segments of the economy.
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