External Reserves Jump by 0.2% As Oil Price Hits $40 Per Barrel

Reserves which had begun a slow recovery since February having dropped to $27.789 billion stood at $27.823 billion as at February 29 but had risen to $27.879 billion as at Monday March 7, 2016, according to latest data given by the Central Bank of Nigeria.

Oil prices broke above $40 a barrel on Wednesday, driven by anticipation that the world’s largest exporters may agree as soon as this month to freeze output, which could accelerate a decline in the largest global build in unwanted crude in years.

Meanwhile, the Debt Management Office says it plans to raise N100 billion in local currency denominated bonds with maturities ranging between five and 20 years next week Wednesday, March 16, 2016.

The debt office said it will raise N40 billion at par in the local bond maturing in 2036, N40 billion of the paper maturing in 2026 and N20 billion of the debt maturing in 2020.

The 2026 and 2020 maturing notes are reopening of previously issued paper, while the 2036 maturing note is a fresh issue.

At the interbank market, lending rates among banks faced south with the exception of overnight rates which rose to 5.0487 per cent from 4.7917 per cent which it was in Tuesday.

One month rate dropped to 7.6966 per cent from 8.0506 per cent. Three and six month’s rate also dropped from 9.4052 and 11.0947 per cents to 8.9165 and 10.757 per cents respectively.