The country’s foreign exchange reserves continued its downward trend as it dropped from $39.8bn on November 11 to $39.24bn on December 13, latest figures from the Central Bank of Nigeria have revealed.
The reserves fell by $1.26bn from $41.76bn on October 2 to $40.5bn as of the end of the month.
According to the CBN, the reserves dropped by $482.18m from N45.14bn as of July 8 to $44.65bn on August 8, 2019.
The CBN Governor, Mr Godwin Emefiele, said recently that Nigeria’s overdependence on crude oil for over 60 per cent of fiscal revenue and over 90 per cent of forex inflows meant that shocks in the oil market were transmitted entirely to the economy via the forex markets as manufacturers and traders who required forex for input purchases were faced with dwindling supplies.
He said the CBN introduced a demand management approach in order to conserve the country’s reserves and support domestic production of certain goods in Nigeria.
Emefiele said, “The introduction of the I&E window, along with improvement in domestic production of goods, has helped shore up our external reserves. Transactions have reached over $55bn since the inception of the window and our foreign exchange reserves has risen to $42bn in September 2019 from $23bn in October 2016.