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HomeAfricaNigeria’s foreign reserves hit six-month low

Nigeria’s foreign reserves hit six-month low

Nigeria’s foreign reserves have fallen to the lowest level in six months, after dropping from US$32.88 billion 22 June to US$31.88 billion 30 June, the local media reported Tuesday.

The current level is the lowest since December 2010, when the reserves stood at US$31.80 billion.
The reserves have fallen by 14.8 per cent from the US$37.42 billion level a year ago.

Economic managers are worried by the depletion of the foreign reserves.

At a recent Monetary Policy Committee (MPC) meeting, Central Bank of Nigeria (CBN) Governor, Mr. Lamido Sanusi, said the falling reserves were hampering the apex bank’s efforts at maintaining the value of the local currency, the naira.

“The economy is not helped by the fact that actual foreign exchange inflows to the central bank from oil sector fall short of expected levels given the significant increase in oil price and output, as well as in comparison to the inflows at comparative price levels pre-crisis,” the CBN Governor was quoted as saying.

”The oil revenue shortfall restricts the ability of the central bank to significantly increase foreign exchange sales and use a strong currency as an antidote to imported inflationary pressure,” Sanusi said

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