Between 1st January and 12th March this year, Nigeria’s external reserves shed the sum of $2.43 billion (about N888.165 billion) in value, data from the Central Bank of Nigeria (CBN) has revealed.
In specific terms, the foreign reserves crumbled from $38.59 billion at the beginning of January to $36.16 billion on Thursday, signalling a 6.3% decline so far this year.
Nigeria’s international reserves have been under pressure lately, overwhelmingly weakened by the ravages of the coronavirus pandemic and the vulnerabilities induced by the oil price war between Saudi Arabia and Russia.
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In January, the foreign reserves lost $590 million, falling from $38.59 billion to $38 billion.
The February figures demonstrate that the reserves shrank by $1.71 billion from $38 billion to $36.2 billion.
The impact of COVID-19 is tentacular, reaching the nation’s capital market, money market, the oil and gas industry and several other sectors of Nigeria’s feeble economy.
Its impact on the external reserves reflects in the recent fall in the value of Naira, which now makes the currency to sell for between N405 and N420 to a dollar.