Oil Price Hits $40.49 Before 2% Decrease; Nigeria’s Foreign Reserve Hits $27.88 Billion

notesThe major contributor to the shrinking value of naira is the price of crude oil that drastically fell from about the first half of 2015, draining the external foreign reserve, which determines the rate of the naira to the dollar according to the demand and relative ability to supply.

This past week, hope for the Nigerian economy came with the price of crude oil getting to about $40.49 per barrel and remaining at that price until Monday when Iran trashed the oil recovery party dropping the price about 2%.

In other developments, Nigeria has now recorded $27.88 billion as foreign reserve. This implies a reasonable increment as against the $27.78 billion displayed on the CBN website on February 18, 2016. Some foreign analysts forecast that with the trends of the naira appreciating value steadily, we may see a stabilization in its value for this week and possibly going into next week.