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Nigeria’s external reserves continue free-fall, shed $393.8m

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Nigeria’s external reserves continued its incessant free-fall for the ninth straight day, dropping by $393.8 million.

According to data obtained from the website of the Central Bank of Nigeria (CBN) on Monday, Nigeria’s foreign reserves stood at $34.57 billion on the 11th of May 2021, compared to $34.97 billion as of 4th May 2021.

The last time the reserves stood at $34.57 billion was in March 22, 2021.

Nigeria’s external reserves have been on the decline due to consistent pressure from the exchange market by investors and manufacturers.

READ ALSO: Naira may emerge weaker, as CBN moves to unify exchange rates

CBN has been faced with dollar demand from exporters along with aggressive hedging strategy adopted by importers in the wake of currency volatility which have all weighed on the reserves.

To ensure there are no shortages of U.S dollar, CBN has continued to inject funds into the FOREX markets.

In itsJanuary monthly economic report, CBN revealed that it injected the cumulative sum of $1.47 billion to further sustain relative stability in the FOREX market.

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