Foreign reserves drop by $673.13m in two months

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Nigeria’s external reserve fell by $673.13m in two months.

Latest figures from the Central Bank of Nigeria reveals that the country’s external reserve stood at $35.89bn on June 28 from $36.57bn on June 1.

The apex bank also said the gross external reserves fell in the first quarter of 2020 to $33.69bn at the end of March 2020, indicating a net decrease of 11.6 per cent, compared with the level in the fourth quarter of 2019.

The external reserves position would cover 4.5 months of import of goods and services or 7.3 months of import of goods only, based on the estimated value of imports for the first quarter of 2020.

A breakdown of the external reserves by ownership showed that the share of federation reserves was $0.32bn (0.9 per cent); Federal Government reserves, $5.85bn (17.4 per cent); and the CBN reserves, $27.52bn (81.7 per cent) of the total figure.

The CBN Governor, Godwin Emefiele, at the last Monetary Policy Committee meeting, reiterated the need for the government to urgently reduce its reliance on oil revenue by gradually diversifying the economy and improving tax collection.

 




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