Foreign assets of Nigerian Banks rise to US$39m, new CBN report shows

NIGERIA –  Foreign as of Nigerian based banks rose slightly to N14.19tn (US$38.82m) as of the end of November, 2019, according to the Central Bank of Nigeria.

The bank stated in its economic report for the fourth quarter of 2019 that the “foreign assets (net) of the banking system grew by 2.0 per cent to US$38.82m at end-November 2019, in contrast to the 24.7 per cent and 2.2 per cent decline at the end of third quarter 2019 and fourth quarter of 2018 respectively.”

The bank explained that the rise, relative to the level in the preceding quarter, was as a result of the increase in foreign asset holdings of the banking system.

CBN stated that with the level at the end of December 2018, the net foreign assets of the banking system fell by 22.8 per cent at end November 2019, compared with the decline of 24.4 per cent at end of third quarter 2019.

Over the level at end-December 2018, the report noted that other assets (net) of the banking system fell by 4.9 per cent at end-November 2019, compared with the 17.4 per cent decline at the end of third quarter 2019.

Net foreign assets (NFA) refer to the value of overseas assets owned by a commercial bank, minus the value of its domestic assets that are owned by foreigners, adjusted for changes in valuation and exchange rates.

According to the World Bank, the net foreign assets position indicates whether a commercial bank is a net creditor or debtor to the rest of the world.

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