Nigeria’s foreign reserve on a downward trend after meteoric rise

Nigeria’s external reserves dropped by $30 million in just 24 hours, the Central Bank of Nigeria revealed on Sunday.

Data from the CBN obtained by Ripples Nigeria showed that the country’s external reserves dropped from $41.75 billion on November 3 to N41.72 billion 24 hours later.

Nigeria’s external reserves had been on a meteoric rise reflecting rising oil prices, the successful Eurobond issuance, and also the $4 billion from the International Monetary fund (IMF)

The data on the nation’s foreign reserves are constantly kept on close watch given that it connects to the country’s ability to meet up with the demand for forex at the foreign currency market.

READ ALSO: Nigeria’s foreign reserves increase by $123.3m in July

Hence, the drop in reserves will be a source of concern for the CBN as it attempts to reduce the pressure in the forex market.

At the CBN Monetary Policy Committee meeting held in September, members called for a comprehensive review of the foreign exchange market operations in the country to determine the fundamental drivers and relative sizes of the market segments.

They also advised the apex bank to ignore the call by some stakeholders for the parallel market to determine the country’s exchange rate.

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