Nigeria’s dollar reserves were going down before the end of 2018.

But between December 2018 and January 9, 2019, it has risen by $6.418 million to $43.047bn as of January 9, 2019.

This is according to latest data from the Central Bank of Nigeria, CBN.

Records revealed that the reserves, which had suffered significant decline in the past, had been maintaining a steady rise of recent.

The CBN Governor, Godwin Emefiele, had earlier said that because crude oil was a major source of the country’s foreign exchange, the nation’s economy became sensitive to fluctuations in prices.

He noted that the CBN tightened money supply in order to contain inflation while improving yields in local bonds, which attracted the attention of foreign investors.

Also Read: Defending Naira With Foreign Reserves Is Dangerous – Moghalu

He said: “Second, we analysed our import bill and encouraged manufacturers to consider local options in sourcing their raw materials, by restricting access to foreign exchange on 41 items. Third, the Investors and Exporters FX window was introduced, which allowed investors and exporters to purchase and sell foreign exchange at the prevailing market rate.

“The impact of these three measures led to an increase in foreign exchange inflows into the country; Transactions in the I&E FX window reached $24 billion ($6 billion net inflows) in 2017 and Nigeria’s foreign exchange reserves rose to over $48 billion at the end of May 2018 from $23 billion in October 2016.”

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