(Ecofin Agency) - Nigeria’s foreign exchange reserves reached about $46 million in March 2018 against $42.8 billion a month earlier, an increase by $3.2 billion just in one month. This was revealed by the country’s central bank.

In January 2018, the foreign reserves were $40.56 billion while they stood at $34.53 billion in December 2017.

According to the bank’s chairperson Isaac Okorafor, the continued feat is the result of the Bank’s effort to vigorously discourage unnecessary imports and reduce import bill while increasing oil and non-oil exports.

Furthermore, he said that the CBN policy to reduce the pressure on foreign exchange reserves has stimulated the supply of local substitute products, replacing imported products. This resulted in job creation and improved incomes for farmers and local manufacturers.

Let’s note that Nigeria is gradually recovering from an economic crisis caused, in large part, by the fall in oil prices (which provides up to 70% of revenues and 90% of foreign exchange resources) on the international market.

This led to a decline in foreign exchange reserves, as the central bank was forced to use its own reserves to support the local currency (Naira).

However, a series of structural and macroeconomic reforms, coupled with a relative rise in oil prices, helped to reverse the trend.