Nigeria current account surplus almost doubles in Q2 vs Q1 -cbank
Friday December 9, 2011 1:02pm
Nigeria said on Friday its current account surplus almost doubled to $8.14 billion in the second quarter of this year from $4.73 billion in the previous quarter due largely to increased exports and high global oil price, the central bank said in a report.
"The movement in current the account position in Q2 2011 indicates a significant improvement in the balance of trade position at $12.51 billion compared with $8.75 billion in Q1 2011 and U$6.51 billion in Q2 2010 respectively," the regulator said in a report on development in the external sector.
The current account balance is significant in measuring a country's foreign trade and an incease indicates that a country's net foreign assets are rising.
Foreign direct investment (FDI) inflow to Africa's biggest energy producer however declined in the period to $1.52 billion from $1.88 billion in the previous quarter, it was better than the $1.50 billion figure a year ago.
"The observed decrease in the inflows of FDI and portfolio investment may be linked to the euro debt crisis which has continued to adversely affect major international financial centers and, hence financial flows to emerging and developing countries," the report noted.
Nigeria's foreign exchange reserves however remain low at $31.88 billion the end of second quarter from $33.21 billion in the previous quarter.