For the first time in nine months, Nigeria’s foreign reserves have dropped below $39 billion as Nigeria fails to take advantage of high oil prices.
Ripples Nigeria Check on the Central Bank of Nigeria (CBN) website showed that as at 16th May 2022, Nigeria’s foreign reserves stood at $38.91 billion.
The last time Nigeria’s reserves fell below $39 billion was on Tuesday, 10th August 2021.
CBN’s effort to meet dollar demands in the country and reduce pressure on Naira has forced it to make continuous withdrawals from the reserves.
A deeper analysis of the foreign reserves further revealed that the CBN has made no deposits but has withdrawn about $892.3 million since April 21.
When further compared to $40.51 billion the reserves stood as at Friday, January 1, 2022, CBN has pulled out a total of $1.59 billion since the beginning of 2022.
At the last Monetary Policy Meeting, CBN expressed optimism that the recently launched “Race to US$200 billion in FX Repatriation” policy would improve foreign exchange supply and strengthen relative exchange rate stability.
It said, “This policy complements fiscal sector initiatives to diversify the economy and enhances the renewed focus on improving domestic economic productivity.”
On why the reserves were depleting despite high oil prices, CBN added that “Nigeria’s oil production remained below the OPEC allocation quota, with attendant consequences on fiscal revenues and external reserves.”
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
FEATURE: Ogun residents, waste collectors trade blames, as refuse litter environment
TIJANI ABDULKABEER, a journalist from the University of Ibadan, during a recent trip to Sango Otta, Ogun State took a look...
INVESTIGATION: How online fraudsters siphon victims’ funds through ‘SportyBet’ platform
As Nigeria transits into a cashless society, the evolution also creates opportunities for internet scammers to take advantage of unsuspecting...
SPECIAL REPORT: Enugu govt watches as waste takes over state, threatens public health, environment
In this report, Arinze Chijioke looks at how delays in evacuation of waste in Enugu State encourages indiscriminate waste disposal, its health implications, and how...
SPECIAL REPORT: Illegal miners degrade Ekiti community, engage in child labour
The activities of illegal miners in a community in Ekiti State have caused degradation of the environment, as miners engage...
SPECIAL REPORT: Inside the illegal trading of forest woods in Cross River community
“With a N20,000 bribe, an external buyer can influence the youth in host communities , Cross River State, to cut...