The Centre for the Study of Economies in Africa, CSEA, has projected a modest growth in Nigeria’s foreign reserves if the global oil market sees further recovery.
The policy research organization, which made the projection in its latest edition of its Nigeria Economic Update released Tuesday, hinged the positive outlook on the easing market conditions in the international crude market.
According to the Centre, while sundry measures being put in place by the government, including the directive to EFCC to investiage cases of forex speculation, to ensure improved management of the foreign exchange market and by implication, help to stem the decline in the value of the naira on account of speculative demand may not be unjustified, the imperative of having a well-designed framework cannot be under-estimated.
It stated: “While these temporary ad hoc measures can limit volatility in the forex market in the shortterm, a well-designed framework is required to manage the forex market within the medium and long term. Given the sustained increase in the price of crude oil in the period, the foreign reserve increased slightly by 0.14 percent ($35 million), from $27.84 billion to $27.88 billion.
“With easing market conditions in the international crude market, a modest growth in Nigeria’s foreign reserve is expected to continue, at least in the near term”, the CSEA added.
