Nigeria, External reserves, Foreign assets.


Reserves are all those foreign assets of a country held by the monetary authorities which can be mobilized at period of external imbalances with else and certainty. External reserves are held in the form of "earning assets" notably government's foreign security or in the form of "non earning" liquid assets like gold bars in the vault of Central Banks. ln Nigeria the composition of the extremal reserve consists of gold, IMF reserve tranche, Special Drawing Rights (SDRS) and convertible currencies, The major sources of extremal reserves are derivable from the components of foreign exchange inflows which include: receipt from petroleum, service income, other invisible items, capital importation, interest payments on foreign securities, extremal borrowing/ foreign aids and grants, non oil export proceeds among others. This paper is intended at complementing other research efforts on the subject matter of external reserve management but more especially to serve as an up-date to the early works. It is organised as follows: Part 2 identifies the composition and sources of external reserve. Part 3 explores external reserve management policy measures before and during the structural adjustment era. Part 4 presents the measures of and analysis of reserve adequacy while the paper is concluded in Part 5 with a critique of reserve management policy measures and concluding remarks.

Author Bio

The author is a staff of Central Bank of Nigeria.

Publication Title

CBN Bullion


No. 4


Volume 18



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