FLASH| Foreign Reserve Drops By 2.68% to $27.14bn

by on May 2, 2016
The Central Bank of Nigeria (CBN) on Friday said foreign exchange reserves fell by 2.68 per cent to $27.14 billion as of April from a month ago, when they were N27.87 billion.
The reserves declined by 5.55 per cent from $29.51 billion a year ago.
A plunge in oil prices has eaten into the foreign reserves of Africa’s biggest economy, with the central bank adopting fixed exchange rate to protect further depletion of its reserves.
However, the data from the apex bank also showed that total assets of the CBN increased to N15.463 trillion for the financial year ended December 31, 2015, showing an increase of 12.5 per cent higher than N13.741 trillion reported in 2014. The bank’s total liabilities also rose by 12.9 per cent to N14.897 trillion as against N13.192 trillion.
The apex regulator which for the first time posted its financial result on its website four months into new year, posted a 266.3 per cent increase in net income, against N33.6 billion achieved in the preceding year. CBN said its interest income grew by 30.4 per cent in 2015 to N567.16 billion from N434.77 billion recorded in the corresponding period of 2014.
Analysis of the report showed that interest expense also increased marginally, rising by 9.7 per cent to N434.96 billion, as operating expenses rose by 42.8 per cent from N433.14 billion in 2014 to N618.85 billion in 2015.
The gains on foreign exchange revaluation which represent foreign exchange differences arising on the translation of debt instruments denominated in foreign currencies that are included in external reserves rose by 116.6 per cent to N565.88 billion.
It’s loans and receivables which includes Asset Management Company of Nigeria (AMCON) notes, Bank of Industry debentures, Nigeria Incentive-Based Risk-Sharing System for Agricultural Lending (NIRSAL) debenture as well as loans to banks on the Commercial Agriculture Credit Scheme (CACS) rose to N6.4 trillion at the end of 2015 from N5 trillion in 2014.

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