Nigerians need not fear or fret about the position of the country’s external reserves or the health of the economy, the Central Bank of Nigeria (CBN) has said.

Speaking yesterday in Abuja, the Nigerian capital, CBN Governor, Mallam Sanusi Lamido Sanusi, dismissed alarming reports that the reserves are experiencing sharp decline and that the country’s economy might not be experiencing good health. The country’s number one banker who spoke at the opening ceremony of the regional course on reserves and foreign exchange management, stressed that the current value of $46bn indicate that the fundamentals of the Nigerian economy remains strong.

“Nigeria’s foreign reserves have not been declining; our reserves level is about $46bn and that’s still very strong, which is approximately 11 months of imports,” said Sanusi, who was represented by the Deputy Governor, Operations, CBN, Mr. Tunde Lemo.

“The fundamentals of the Nigerian economy are still very strong and occasionally, there might be increase or decrease, but it has been hovering between $45bn and $47bn, and that is very strong. In Africa, it is either the second highest or third highest. I think it is the second highest only after Algeria, and that’s really very remarkable,” he added.

The CBN Governor explained that “a major concern among central banks in recent times is how to generate income from foreign exchange reserves without compromising the reserves management objectives of safety and liquidity. Liquidity and safety are far more important and they come before returns management.”

He noted that since the financial crisis of 2008, reserves managers had come under increased pressure to find ways of enhancing income. This development, he disclosed, made the CBN to diversify its reserves portfolios by investing in the Chinese Renminbi.

Nigeria’s foreign reserves have been hovering between $47bn and $48bn since February 20 this year. The Nigerian Government is targeted an external reserves balance of $50bn by the end of this year.

•Photo: CBN Governor Sanusi.

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