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Naira: Nigeria’s External Reserves At 3-Month Low, Now $30.22 Billion

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Nigeria’s external reserved has dropped to $30.22 billion, despite consistent interventions to bolster the Naira at the foreign market.

The figure, which is the lowest level in three months, was contained in Central Bank of Nigeria (CBN) website on Wednesday.

CBN disclosed that external reserve dropped to $30.222 billion on Tuesday June 13th, representing a weekly decline of $68 million when compared with the $30.290 billion achieved the previous Tuesday of June 6th.

The current $30.22 billion represents the lowest level since March 14th, or 13 weeks ago, when the reserve was $30.23 billion.

The reserve has been on the decline since May 4th when it reached a peak of $30.99 billion.

Since then, the reserve has dropped by $770 million.

However, the naira closed at 364 per United States dollar on Wednesday.

It was the same rate the local currency closed on Monday and Tuesday.

Recall that the local currency closed at 365 per dollar on Sunday.

Meanwhile, the Central Bank of Nigeria (CBN) has pump another $413.5 million into the market.

The latest greenback intervention, CBN explained, further underscored its resolve to guarantee liquidity in the market as well as shore up the international value of the naira.

CBN Acting Director in charge of Corporate Communications, Isaac Okorafor, disclosed that the CBN offered the sum of $100 million to dealers in the wholesale window, while the Small and Medium Enterprises (SMEs) window was allocated a total of $28 million.

The invisibles segment was allocated the sum of $25.5 million to meet the needs of those requiring forex for Business/Personal Travel Allowances, school tuition, medicals, etc.

He said also released the figures for the auction sales in the retail window last week, totalling $260million.

The CBN spokesperson said the Bank was optimistic that the naira will continue its strong run against the dollar and other major currencies around the world, considering that transparency in the market has ensured greater stability.

On the Bank’s objective to achieve convergence between the forex rates at both the inter-bank and BDC segments, Okorafor said the CBN was confident of achieving the goal soon, particularly if all stakeholders played by the rules.

The official charged all dealers, principally licensed Bureaux de Change (BDCs), to abide by the rule, for the sake of the economy.


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