Nigeria’s External Reserves Rise by $1.91bn in August

Nigeria’s External Reserves Rise by $1.91bn in August

Nigeria’s gross external reserves increased by $1.91 billion in August, closing the month at $41.267 billion as of August 29, based on data obtained from the Central Bank.

The nation’s foreign reserves opened the month with the total sum of $39.359 billion on the back of successive inflows.  The country’s gross external reserves is at its highest since 2021 amidst uncertainties in the global commodities market. 

Oil prices fell on Friday as traders looked toward weaker demand in the U.S., the world’s largest oil market, and a boost in supply this autumn from OPEC and its allies. Oil market still posted week on week price surge supported by expectation over demand outlook with US Fed rate cut looming.

However, Nigeria’s Bonny Light crude declined by 2.53% to close at $69.44 per barrel.

Brent crude futures for October delivery, which expired on Friday, settled at $68.12 a barrel, down 50 cents, or 0.73%. The more active contract for November finished down 53 cents, or 0.78%, at $67.45. West Texas Intermediate crude futures settled at $64.01, down 59 cents, or 0.91%.

Gold prices rose around 1% on Friday and were poised for their best monthly performance since April, as U.S. inflation data reinforced expectations that the Federal Reserve could cut interest rates next month. Spot gold was up 0.8% at $3,443.19 per ounce, its highest level since July 17.

Bullion has gained 4.7% in August. U.S. gold futures for December delivery settled 1.2% higher at $3,516.1.

Investors are monitoring India’s response to U.S. pressure to halt Russian oil purchases, especially after Trump raised tariffs on Indian imports to 50% last Wednesday. Despite this, India continues to defy U.S. demands, with Russian oil exports to India expected to increase in September.

The prevailing expectation is the absence of imminent Russian sanctions, allowing India to keep buying discounted Russian crude despite U.S. threats.  #Nigeria’s External Reserves Rise by $1.91bn in August#

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