Nigeria’s external reserve now below $40bn, as CBN continues withdrawal

-

 


Tough times await Nigerian currency, and its economy as for the first time in three months, Nigeria’s external reserve has fallen below the $40 billion threshold.

According to latest data published by CBN on Friday evening, Nigeria’s external reserves level as at Thursday, 3rd February 2022, had fallen to $39.98 billion.

This came about a day after Ripples Nigeria reported that the apex bank withdrew $400 million from the reserve in the month of January 2022.

The reserves had been on a good run since October 2021 after CBN took receipt of IMF SDR $3.5 billion and also successful issuance of $4bn euro bond.

But pressure from the foreigh exchange market, coupled with weak dollar coming in from oil sale, forced CBN to rely on external reserves to defend Naira.

Most notable was the fact that Nigeria’s international trade balance continued to rise as importation exceeded export by a whopping N3 trillion as at Q3, 2021.

With the consistent decline of the reserves and the Nigerian National Petroleum Corporation not showing signs of fixing it’s production challenges, Naira could face devaluation in the coming weeks.

CBN needs the external reserves to intervene at the forex markets and also further minimize the relevance of black market traders. How this can be achieved remains to be seen

Comments

Post a Comment

Message Sent

Popular posts from this blog

Meet the world's hottest transgender - Amiyah Scott

-
Image
Yep, all that used to be male. Her name is Amiyah Scott, but she was born ‘Arthur Scott’ in New York in 1988. She's a transgender model and make-up artist. Arthur started the process of turning into a woman when he was 17. He got breast augmentation, booty shots, light filler in the cheeks etc etc.  by linda ikeji       
Read more

Man shot dead by police officer who tried to jump fuel queue in Lagos; police identifies officer responsible

-
Image
  A police officer has gunned down a Lagos resident who prevented him from jumping the queue to buy fuel at a Nigerian National Petroleum Company Limited (NNPCL) filling station at Obalende in the Ikoyi area of Lagos State.    Toheeb Eniafe was in the queue to get petrol on Wednesday evening, May 1, when two men, said to be police officers, attempted to drive into the station to buy petrol even though they were not in the queue to get the product.  This attempt by the police officers to jump the queue was met with stiff resistance from people in the queue who had been waiting for hours.   Eniafe was at the forefront of the resistance, telling the men to join the queue like everyone else.   This degenerated into a physical fight and one of the men shot Eniafe before fleeing the scene.  An angry mob was said to have chased and caught up with one of the officers but he later escaped after firing shots in the air.  On Thursday, May 2, the La...
Read more

Ugandan President Museveni claims IMF, World Bank and Western countries purposely keep African countries in perpetual poverty (video)

-
Image
President Yoweri Museveni of Uganda has claimed that the West and various international monetary lenders keep Africa in continuous poverty. Speaking at the World Bank’s International Development Association summit for African Heads of state, held in Nairobi, Kenya, Museveni took a bold swipe at world leaders saying that most of Africa’s problems predicted over 60 years ago were a result of philosophical, ideological, and strategic economic mistakes. He claimed that a fundamental African problem is that aid from the World Bank and other Western bodies was majorly for profiteering. “The crisis which is in Africa today is because of philosophical, ideological, and strategic economic mistakes which we have been talking about since the 1960s. It is not an accident when you see the crisis in many African countries, the collapse of States. We predicted this in the 1960s – philosophical, ideological, and strategic mistakes. I don’t have time to amplify each one but I was very happy to hear the...
Read more