Nigeria’s Dollar Reserves Has Declined For 3 Consecutive Months
So, it isn’t looking that good for Nigeria’s dollar arsenal. It has been depleting, even though the Central Bank of Nigeria, CBN has said no need to worry.
The foreign exchange reserves have been falling continuously in the past three months, according to a report from the Central Bank of Nigeria.
Latest figures obtained from the CBN showed that Nigeria’s external reserves stood at $42.34 billion as of October 25, 2018.
This was against the $47.28 billion recorded on July 25, 2018, an indication that the reserves dropped by $4.94 billion within the three-month period.
It was also observed that the reserves dropped from the $47.28 billion figure of July 25 to $46.09 billion on August 24, and depleted further to $44.53 billion on September 25, before falling to the latest value of $42.34 billion on October 25.
Recall that the Head, Emerging Economies Regional Studies Division at the IMF’s European Department, Anna Ilyina, who spoke at the Annual General Meeting of the IMF/World Bank in Bali, Indonesia, had said Nigeria and other emerging market nations had come under pressure since April.
She warned that the advanced economies’ interest rate hikes were still at the early stage, adding that Nigeria should be cautious on the use of its external reserves as global external conditions remained challenging.
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