Nigeria’s foreign reserves fall again

Nigeria’s foreign exchange reserves have fallen again.

The reserves which fell by $940m (N185 billion), about two weeks ago, has fallen again by $210m, CBN latest data have revealed.

The reserves now stand at $30.48 billion, a fall from $30.69 billion two weeks ago, and $31.47 million a month earlier.

Though the reserves fell by 3.14 percent by the month, 23.03 percent depletion has been recorded, relative to the September 2014 figures.

The central bank has used the reserves to support the local currency, selling dollars to bureau de change operators twice a week, as it narrows the gap between the official and black market rates.

The reserves crossed the $30 billion mark in July, when it saw an increment of 5.6 percent from $29.03 billion in June, to $30.69 billion.

In August, the CBN indicated that foreign exchange reserves rose by $350 million (N70 billion) to $31.43 billion, but has since then fallen twice, with no succour in view.

The dwindling experienced so far has been attributed to efforts of the present government to plug leakages and demand management by the apex bank.

Another school of thought posits that this would continue for as long as it takes the new government to pitch its policy direction, seeing all investors have had to work with is the president’s ‘body language’.

Godwin Emefiele, the CBN governor (pictured), has warned that the Nigerian economy may plunge into recession if the government does not take pro-active measures.