Nigeria’s foreign reserves have recorded the biggest drop so far this year, falling from US$64 billion to US$60.4 billion between 4 and 24 August, according to the Central Bank of Nigeria (CBN).
But the CBN said there was no cause of alarm over the 7.5 per cent drop in the reserves, which have been on the upswing as the price of crude oil goes up.
“There is no cause for alarm. The change was simply a reflection of the relationship between inflows and outflows within the period,” CBN spokesman Festus Odoko said.
Falling oil prices, the strengthening of the US dollar and the activities of militants in the oil producing Niger Delta region – which have led to a 25 per cent drop in oil production – are responsible for the drop in the reserves.
