Nigeria’s external reserves gained $3.98bn in three weeks, rising above the $40bn mark, according to data obtained from the Central Bank of Nigeria.
The CBN data showed that the reserves rose to $40.76bn on October 20 from $36.78bn as of the end of September.
The reserves, which had maintained a growth trajectory in recent weeks, rose by $2.76bn in September from $34.02bn at the end of August.
A professor of economics and Chairman, Goldmark Education Academy, Benin City, Mike Obadan, said the value of a country’s currency is determined by the strength of the economy in terms of its production capacity and productivity, structure, and diversification of the export production base.
Obadan, who is a former director-general, National Centre for Economic Management and Administration, Ibadan, Nigeria, said, ‘A vibrant and diversified productive real sector of the economy saves a nation the disbursement of scarce foreign exchange for the import of finished goods and production inputs, especially where these could be produced locally, and reduces pressure on foreign exchange demand.