YEAR TO DATE FOREIGN RESERVE MOVEMENT IN USD :CHART - abokiFX
- The Naira has been trading below N400/$ for the past four months as the foreign reserves hover above $30bn.
- There is the risk of crude oil falling below $40 a barrel which could see the reserves dip below the $30bn threshold.
- The chart above shows that a foreign reserve below $30bn will put pressure on the naira, making it slip back above N400/$ in the parallel market.
Abokifx looks at various countries foreign reserves in comparison to Nigeria's foreign reserve - abokifx
With Nigeria's population at 190 million, Nigeria's foreign reserve needs to be about $100bn to eliminate any pressures on the naira. The chart and table below show why this is necessary. - abokiFX research
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