The Nigerian foreign reserves has dropped from $38.53 billion to $33.44 billion in nearly four months, Central Bank of Nigeria (CBN) latest report has shown.
This represents $5.09 billion drop in foreign reserves for the period, the report revealed.
Recall the CBN showed that the reserves has been on a consistent fall since the middle of 2019, causing it to drop from $45.14 billion on 8th July to $44.65 billion on 8th August.
Further dropped of $1.26 billion between 2nd October 2019 and 31st October 2019 was recorded, falling from $41.76 billion to $40.50 billion in between the periods.
According to CBN figures, the reserves dropped from $39.8 billion on 11th November 2019 to $39.24 billion on 13th December 2019.
Godswill Emefiele, CBN Governor, said at the last Monetary Policy Committee meeting that the “Weakened revenue status of the Nigerian government emerged from the deep slump in oil prices at the global market.”
“The major downside risks to this outlook, however, include the continued spread of COVID-19; further decline in crude oil prices and the reduction in accretion to external reserves.”
The Apex bank governor said, “the headwinds would, however, be partly mitigated by the timely and effective response of the monetary and fiscal authorities in containing the spread of the COVID-19 pandemic, the recalibration and adjustment of the 2020 federal budget to the revised thresholds.”
The Organisation of the Petroleum Exporting Countries (OPEC) this month pledged to cut output by an unprecedented 9.7 million barrels per day in May and June.
Bussiness standard report has shown that oil futures marked their third straight week of losses last week, with Brent ending 24 per cent down. Prices have now fallen for eight of the past nine weeks.