Nigeria’s foreign reserves has fallen to an all-year low, following a fluctuation in the naira, crude oil prices and the country’s oil production levels.
The reserves fell to $26.59 billion on Thursday, its lowest point in 2016, as earnings from crude oil sales fall. The reserves opened 2016 at $29.07 billion in 2016.
In April, Nigeria’s production levels fell short of the petroleum ministry’s projections by over 500,000 barrels per day, making Angola the largest exporter of crude in Africa.
The fall in oil output was worsened by the activities of vandals in the Niger Delta region, which reduced Nigeria’s output to 1.4 million barrels per day.
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The 800,000 barrels fall in Nigeria’s output led to a rise in crude oil prices on the international market, as crude oil prices rose above $49 per barrel.
The Organisation of Petroleum Exporting Countries (OPEC) crude basket rose as high as $44.88 per barrel on Wednesday, before falling to $43.84 on Friday.
The naira also fluctuated in like manner on the parallel market. The local currency depreciated to as low as 360 to the dollar on Monday, and recovered slightly to 345, N341 on Tuesday and Wednesday respectively.
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According to NAN, the naira gained about N3 on Friday to exchange between N342 and N345, from N341 it traded on Wednesday.
The primary legal tender also exchanged between N480 and N490; and N380 and N385 against the pound sterling and the euro respectively.
Meanwhile, the official rate at the Central Bank of Nigeria (CBN) remained at N197 to a dollar.
Traders at the market were optimistic that the naira would make a rebound soon as a result of the renewed activities in the market.
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