Categories: News

Nigeria’s External Reserve Plummets As Dollar Inflow Ebbs

Nigeria’s foreign reserve has shrunk to its lowest in 8 months as the Central Bank of Nigeria (CBN) effort to save the Naira from further deterioration in value takes its toll.

The foreign reserve now stands at $34.85 billion on December 14, data from the CBN has shown.

According to the data, in the last five weeks, foreign reserves fell by $805 million from $35.656 billion as of November 4, 2020.

Eko Hot Blog understands that the continued slide in fortune is partly due to the apex bank interventions across the various foreign exchange (FX) windows to shore up the naira’s value in the face of dwindling dollar inflows.

This is the lowest level since April when it stood at  $33.4 billion due to he COVID-19 pandemic and falling oil prices.

Read Also: CBN Releases Categorisation For Payment System

In January this year, the nation’s reserves stood at $38.5 billion before declining to $36 billion in February and early March. It further declined to $35 billion late March, before sinking further at $33 billion in April.

It rose again following the disbursement of the $3.4 billion IMF emergency support to Nigeria to address COVI-19 pandemic, and has remained in the $36 billion region since July this year.

Afolabi Hakim

A budding writer, content creator and journalist. Good governance advocate and social commentator.

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