Nigeria’s foreign exchange reserves has dipped to $42.85 billion, the lowest level in two months, according to the latest data from the Central Bank of Nigeria, CBN on Sunday.

The reserves, which stood at $43.174 billion on January 31, dropped by $314 million in two weeks to $42.86 billion on February 14.

The external reserves had risen to a high of $47.865 billion on May 10, 2018 but plunged to $41.523 billion on November 22.

On December 13, the reserves stood at $42.877 billion.

PwC Nigeria, in a new report titled “Nigeria economic outlook – Top 10 themes for 2019’, said the CBN increased dollar injections into the forex market by 87% to $40 billion in 2018 in a bid to sustain its policy of exchange rate stability amid sustained demand pressures.

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According to the report, recent history suggests that election cycles are associated with decreased external reserves and increased forex demand.

It said there was a sharp 24% decline in external reserves between January 2010 and May 2011 and a 30% decline between January 2014 and May 2015.

More so, analysts at Cordros Capital said on Friday that the forex reserves depleted for the second straight week as the CBN recorded another foreign reserve drawdown of $88.07 million week-on-week to $42.86 billion.

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