Gross Official Reserves Increased By US$330m in May 2019 to US$45.12bn

Forex
548 VIEWS
Proshare - Facebook Proshare - Twitter Proshare - Instagram Proshare - Linked In Proshare - WhatsApp
Proshare

Tuesday, June 11, 2019  /  08:55AM  /  FBNQuest Research  

                                                                                 

Gross official reserves increased by US$330m in May to US$45.12bn. Whether the modest accretion of the past two months continues for a third hinges upon foreign portfolio investors (FPIs) on the fixed income side and the direction of the oil price. Signals that the Federal Reserve, having stalled its policy of normalization, may move to a rate cut should underpin the holdings of FPIs. For the oil price, we are looking to a positive stance from OPEC+ to offset the negative impact of global trade tensions. We are currently more confident on the first point than the second.                                                                           

We also show the reserves position for South Africa and Egypt in our chart but caution that we are comparing apples with pears. The Nigerian data are gross, cover just fx and exclude swap contracts.

The South African series is the most detailed. Gross reserves are the conventional total of SDR holdings at the IMF, gold holdings and fx reserves including foreign currency deposits at the SARB. This figure is then adjusted to deduct those deposits and allow for changes in the forward position, resulting in the international liquidity position in the chart.

 

Official reserves (US$ bn)

Proshare Nigeria Pvt. Ltd.

 

Sources: CBN; South African Reserve Bank (SARB); Central Bank of Egypt (CBE); FBNQuest

Capital Research

 

As for the CBE’s data, net and gross international reserves are similar.

Nigeria’s stated reserves provide cover for 13.3 months of merchandise imports at 2018 levels, and 7.5 months when we add services. For Egypt and for the 2017/18 fiscal year (July-June), the comparable figures are 8.4 months and 7.2 months. Its imports of goods are far higher than Nigeria’s but its services account is much stronger.

 

Proshare Nigeria Pvt. Ltd.


Related News

  1. CBN Injects $294.7m, CNY 31.43m into Retail SMIS
  2. CBN Injects $205m into Forex Market
  3. Gross Official Reserves Increased By US$360m in April 2019 to US$44.79bn
  4. CBN Injects $205m Into Forex Market
  5. How to Combine a Job with Forex Trading?
  6. The Many FX Interventions Of The CBN
  7. CBN Intervenes With $271.83m, CNY41.14m In Retail SMIS
  8. Inter-Bank Forex Market Gets $210m Boost from CBN
  9. CBN Injects $254.8m, CNY35.8m into Forex Retail SMIS
  10. Forex Market Gets $210m CBN Boost
  11. Forex in Nigeria: The Future is Now?
  12. Again, CBN Boosts Forex Market with $210m
  13. Forex Intervention: CBN injects $247.8m, CNY 34.8m into Retail SMIS
  14. Gross Official Reserves Decreased by US$860m in February 2019 to US$42.31bn

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.
READ MORE:
Related News
SCROLL TO TOP