External reserves lowest in six months, at $42.84bn


The Central Bank of Nigeria has revealed that the nation’s foreign reserves have further declined to the lowest since March 2019.

The external reserves, which rose to a high of $45.18bn on June 10, 2019 from $43.17bn on January 1, dropped to $42.84bn on September 12.

The reserves dipped by $763m in 13 days from $43.60bn on August 30.

One of the core mandates of the CBN is to manage the forex reserves, which are assets held on reserve in foreign currencies.

The central bank receives foreign exchange inflows from crude oil sales and other sources of revenue on behalf of the Federal Government.

“Such proceeds are purchased by the bank and the naira equivalent credited to the federation account. These proceeds are shared each month, in accordance with the constitution and the existing revenue sharing formula. The monetised foreign exchange, thus, belongs to the CBN. It is from this portion of the reserves that the bank conducts its monetary policy and defends the value of the naira,” the CBN said on its website.

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