External reserves sink below $40bn

    The nation’s foreign exchange reserves have slumped below the $40bn mark, hitting their lowest level in 22 months.

    Latest report from the Central Bank of Nigeria has showed that the external reserves, which have been on a downward trajectory in recent times, dipped by over $5bn in the last five months.

    The reserves rose to a high of $45.18bn on June 10, 2019 but fell to $44.9bn on July 31 and $43.61bn on August 30.

    The biggest monthly decline was recorded in September as the reserves shed $1.76bn to close at $41.85bn. They further dropped to $40.46bn as of October 31.

    As of November 25, 2019, the reserves stood at $39.88bn, the lowest level since January 18, 2018, according to the CBN data.

    One of the core mandates of the CBN is to manage the reserves, which are assets held on reserve in foreign currencies.

    The central bank receives foreign exchange inflows from crude oil sales and other sources of revenue on behalf of the Federal Government.

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