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Nigeria’s external reserves drop by $21.8m in six days as CBN moves to meet forex demands

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Nigerian external reserves dropped to $40.49billion following the withdrawal of $21.8million from the reserves by the Central Bank of Nigeria (CBN) earlier in the week.

Data obtained from the CBN website by Ripples Nigeria on Saturday revealed that country’s foreign reserves dropped from $40.52 billion on December 31, 2021, to $40.49 billion by January 6, 2022.

It added that the apex bank withdrew the $21.8million to meet forex demands from manufacturers, importers, travellers, and students studying abroad.

Nigeria’s external reserves hit a three-year high of $42 billion in October last year.

The reserves had since dropped by 3.17 percent or $1.33 billion.

READ ALSO: Nigeria’s external reserves grow by 1.59% in August

The increase was largely due to inflows from the Eurobond proceeds and the Special Drawing Rights (SDR) allocation to Nigeria by the International Monetary Fund (IMF).

At the last CBN’s Monetary Policy Committee (MPC) meeting held on November last year, a member of the committee, Ahmad Aishah, stressed the need for the external reserves to be in good health.

She said: “External reserves increased by 0.17 percent from $41.34 billion in October 2021 to $41.41 billion on November 18, 2021.

“This development will further sustain the current exchange rate stability at the Investors’ and Exporters’ (I&E) window with positive implications for domestic prices.”

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