CBN Says No Need To Panic Over Falling Dollar Reserves
Nigeria’s dollar reserves have been on the decline recently.
But the apex bank, Central Bank of Nigeria, said there is no need to worry.
The external reserves, which rose to a high of $47.865 billion on May 10, fell to $46.461 billion on August 15, while the nation has seen an outflow of foreign portfolio investment from the stock market in recent months.
“In this country, we survived when the reserves was at $24 billion; from there, we moved to $31 billion, and now we are at about $47 billion. So, I don’t see why we should be worried about this.
“Our reserves position is so comfortable that we can deal with any eventuality,” said the Acting Director, Corporate Communications, CBN, Mr Isaac Okorafor, on Thursday at a press briefing after the Bankers’ Committee in Lagos.
He said the capital reversals were not as much as expected, adding, “We are even in a better position of confidence.”
The Director of Banking Supervision, CBN, Mr Ahmed Abdullahi, said the outlook for the economy this year was much better than that of 2017.
He said: “We have seen stability in the exchange rate being sustained, GDP growth higher than 2017. There are capital reversals in our capital market, and it is a little bit bearish, but the fact is that capital outflow in the Nigerian economy is far less compared to many emerging economies.
“It is a sign that there is high confidence in the Nigeria economy. We are happy with the developments in the economy generally.”
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