Reports obtained from the Central Bank of Nigeria reveals that Nigeria’s external reserves declined by $610 million in the month of November as it fell to $41.22 billion in November from $41.83 billion recorded in October.
The reserves gained $5billion in October but turned on a downward path in November.
The CBN’s Governor, Godwin Emefiele at the Chartered Institute of Bankers of Nigeria’s dinner in Lagos disclosed that the present level of external reserves could meet the country’s import demand for nine months.
He added that as a result of the drop in foreign exchange supply arising from low earnings from the sale of crude oil, the naira depreciated by 7.7 per cent from ₦380 per dollar to ₦410 per dollar at the I&E window.
Emefiele explained further that massive outflow of foreign portfolio investments from emerging and frontier markets also affected supply.
These factors put together led to a decline in the nation’s foreign reserves to $32.9 billion in June from almost $36.7 billion at the beginning of the crisis in March.
