http://punchng.com/external-reserves-hit-11-year-low-24-21bn/
The country’s external reserves have hit an 11-year low of $24.21bn, according to the latest data from the Central Bank of Nigeria.

The development means a limited amount of dollars will be available at the official interbank spot market, fuelling concerns over another round of depreciation of the naira.

The country’s external reserves had depleted to a then record-low of $24.8bn about two weeks ago.



The foreign exchange reserves fell by $600m in two weeks before shedding $1bn in four weeks, the CBN statistics showed.

Specifically, the reserves fell from $25.8bn on August 16 to $24.8bn on September 16. It decreased by $600m from the $25.4bn recorded on August 31 to $24.8bn on September 16, the current CBN data revealed.

The spate of decline in the external reserves follows the CBN’s almost daily interventions at the interbank/official foreign exchange market in recent weeks, as chronic dollar shortage continues to weigh on the economy.

In its efforts to defend the naira and prevent it from falling further at the official interbank market, the central bank has been selling dollars there more frequently.

The naira had fallen to an all-time low of 365.25 to the dollar at the interbank market on August 18 before making a gradual recovery.

On Friday, the local currency closed at 305 against the greenback at the official market, while closing at 460 to the dollar at the parallel market on the same day.

The CBN had on June 20 lifted its 16-month-old currency controls and auctioned about $4bn on the spot and futures markets to clear a backlog of dollar demand and help boost interbank market trading.

The global plunge in oil prices caused the reserves to be depleting very fast. The development had forced the CBN to introduce foreign exchange controls, which were abandoned in June.

Buhari is only concerned about the #theotherroom. Anything about Governance, we all know he has no idea..

Casssandra the dullard.

What is depleting our dollars.?

Buhari needs to be questioned

Every record has been broken by this government

Lots of people who don't understand the meaning of this thread will just flow in to attack Buhari.
When Jonathan ruled the reserve was being depleted at a rate of $8B a year when oil sold for average of $80+pb, I wonder how Buhari was able to incur a decrease of just around same $8B in his 16 months with oil selling at average of less than $50pb.

The CBN announced that the reserves for March 2015 dropped by $8billion when compared to what it was at the end of March 2014. The organization said: “The stock of external reserves at end-March 2015 stood at $29.36billion as against $34.24billion and $37.4billion recorded at end-December 2014 and end-March 2014, indicating respective depletion of $4.9bn or 14.3 % and $8bn or 21.5 %. The depletion was mainly due to the funding of the rDAS window and intervention at the interbank market to stabilise the naira exchange rate. The current level of external reserves, which is equivalent to 7.1 months of import commitment, could also finance 6.8 months of foreign exchange disbursements and 5.2 months of imports of goods and services.”
Read more: https://www.naij.com/524260-shocking-see-cbn-defends-naira.html

EternalTruths:
What is depleting our dollars.?

Buhari needs to be questioned

lack of alternative source of $$ asides oil sales is depleting it. The reserve is like the fixed asset of nation.

Sibrah:
Lots of people don't understand the meaning of this thread will just flow in to attack Buhari.

Pls will u just sh*ut up and get o*utta here? Even Zombies in movies have brains. If they don't attack Buhari as the President presiding over the destruction of our country is it late Yaradua that will be held responsible? Must you support rubbish because of religio*n? Goooshhhhh!

Pavarottii:
Buhari is only concerned about the #theotherroom. Anything about Governance, we all know he has no idea..

Casssandra the dullard.

If Nigerians had left Jonathan in power by now there would be less than $2B there. Buhari, throug excellent management help slow down its depletion.

Sibrah:
lack of alternative source of $$ asides oil sales is depleting it. The reserve is like the fixed asset of nation.

Imagine Obama had people like you as supporters when he took over an American economy under recession. If Buhari isn't willing to work, he should just resign. How can a man be toying with the destiny of over 170M people? Didn't we elect him to get alternative sources?

Sibrah:
If Nigerians had left Jonathan in power by now there would be less than $2B there. Buhari, throug excellent management help slow down its depletion.

You are sooo annoying this evening. Are you God to know that it would have been depleted? Why didn't that your brain think that it could have been the other way round? Reli*gion has affected your sense of reasoning

naijaboy756:
Imagine Obama had people like you as supporters when he took over an American economy under recession. If Buhari isn't willing to work, he should just resign. How can a man be toying with the destiny of over 170M people? Didn't we elect him to get alternative sources?

Depletion of reserves is inevitable in a recession. If you know anything about the workings of our economy you will know that Buhari slowed down its rate of depletion greatly. You are clearly one of the pained lot who just wail uncontrolled.

The fact that we spent $217B to defend the Naira in a period of 12 years and half of the dollar spent was in the Jonathan years is enough proof that oil earning reduction was largely the cause of recession and dollar price increase.

So, a total of $217.2 billion dollars ($217,273,201,021.31) has been spent in part ‘defending the naira’ since 2002. That is nearly half our GDP and an average of $16.7billion per annum. A look at the chat above also shows the increase in actual selling of our dollars began in 2008 and took off completely in 2009. It also suggest the highest spend were recorded in 2011 and 2014 respectively. In fact between 2011 and 2014 we had spent about $107.2billion via various auctions defending the naira, 49% of the total amount used in meeting official dollar demand. It is also no coincidence that those years are the Goodluck Jonathan years and off course with Okonjo Iweala as the coordinating Minister of the economy. The spending was also under the purview of the former and current CBN Governor Lamido Sanusi and Godwin Emefiele respectively.

http://nairametrics.com/chart-of-the-day-cbn-spent-217-2billion-between-2002-and-2014-defending-the-naira-and-how-much-was-spent-by-gej-administration/

Sibrah:
If Nigerians had left Jonathan in power by now there would be less than $2B there. Buhari, throug [b]excellent management [/b]help slow down its depletion.

You afonjas must be living in a parallel Universe.

naijaboy756:
You are sooo annoying this evening. Are you God to know that it would have been depleted? Why didn't that your brain think that it could have been the other way round? Reli*gion has affected your sense of reasoning

I have facts unlike you.
Facts to prove that Buhari slowed down the rate of depletion of the reserve and fact that GEJ was just throwing petrodollar at forex market and yet the dollar rate rose.

CBN official exchange rate movement 2002 – 2014 (Source: CBN)

The chart immediately above again suggest no. Nigeria has depreciated against the dollar continuously no matter how much is spent defending it. It’s either we import way too much stuff or we rely too heavily on foreign portfolio investments to drive the economy. Either way, they both result in enormous dollar outflows and if not balanced with larger export proceeds will result in a depreciation of the local currency. This perhaps is what has happened. The chart also shows a steep climb between 2009 and 2014 which coincides with when the we sold the most dollars.

Sibrah:
Lots of people don't understand the meaning of this thread will just flow in to attack Buhari.

Sometimes I question myself, do some people use the medular oblongata?

Sibrah:
Depletion of reserves is inevitable in a recession. If you know anything about the workings of our economy you will know that Buhari slowed down its rate of depletion greatly. You are clearly one of the pained lot who just wail uncontrolled.

As it concerns Nigeria of today, all the *reasonable* Nigerians are wailing including Buhari's wife. Only bra*in blocked dundies like y*ou are doing the rubbish you are doing now!

Omooba77:


Sometimes I question myself, do some people use the medular oblongata?

You think you are sly, but I know you aren't.

@Sibrah I wonder how much you were paid to keep vigil on the Internet to defend the indefensible. You really have a tough job because the more you defend this administration the more you get disappointed

Sibrah:
You think you are sly, but I know you aren't.

lalasticlala please come and help me warn this zombie

Sibrah:
I have facts unlike you.

facts ko, other room ni! Religi*on has b*locked your sense of reasoning

Decibel:
@Sibrah I wonder how much you were paid to keep vigil on the Internet to defend the indefensible. You really have a tough job because the more you defend this administration the more you get disappointed

I wonder how much he is being paid and many like him; turning themselves to Joe Goebbeps of Hitler era.

it is finished!

Decibel:
@Sibrah I wonder how much you were paid to keep vigil on the Internet to defend the indefensible. You really have a tough job because the more you defend this administration the more you get disappointed

Stop being petty man. Use your brain and reason things out like a functional adult.

Omooba77:


I wonder how much he is being paid and many like him; turning themselves to Joe Goebbeps of Hitler era.

You lack comprehension of article you posted and Lalasticlala won't help you. Scream all you want bros . . .

Omooba77:


I wonder how much he is being paid and many like him; turning themselves to Joe Goebbeps of Hitler erla.

The way and manner they flood the blogosphere with meaningless conjectures, epistle upon epistles trying to sway opinion on theirside is tiring to say the least. This administration will be worse than the former.

Sibrah:
If Nigerians had left Jonathan in power by now there would be less than $2B there. Buhari, throug excellent management help slow down its depletion.

if GEJ was in power today, nigeria will never be in recession.

MrKrap:
if GEJ was in power today, nigeria will never be in recession.

No, we will. Go research the rate at which the reserve was being depleted under GEJ last two years and get to understand what I am driving at.

MrKrap:
if GEJ was in power today, nigeria will never be in recession.

no mind d zebra Zombie

Sibrah:
No, we will. Go research the rate at which the reserve was being depleted under GEJ last two years and get to understand what I am driving at.

and you think they will be clueless to halt the depletion?

Decibel:

The way and manner they flood the blogosphere with meaningless conjectures, epistle upon epistles trying to sway opinion on there side is tiring to say the least. This administration will be worse than tue former.

Na so my brother,they ensured the gullible ones were swayed away. Job loss is on the increase,many families are under serious financial burden.

Sibrah:
No, we will. Go research the rate at which the reserve was being depleted under GEJ last two years and get to understand what I am driving at.

why do u tink d reserve is under going serious depletion it was becos of buari's ungarded remarks about dollars, forex restrictions n lack of economic policy direction dat saw d con3 delisted from JP-morgan index group with foreign investors leaving in droves dat saw d economy lost $80 billion in d last one year.
if GEJ was in power today, he never would have wasted 6 months to appoint ministers n charge a new economic direction to deal with falling international oyel price. d naira will at most be at N250, thus d depletion of foreign reserves to defend d naira will not even arise.

naijaboy756:
and you think they will be clueless to halt the depletion?

Whe didn't he halt it when he watched it deplete from over $50B in value? You need to think before typing.

MrKrap:
why do u tink d reserve in under going serious depletion it was becos of buari's ungarded remarks about dollars, forex restrictions n lack of economic policy direction dat saw d con3 delisted from JP-morgan index group n foreign investors leaving in droves dat saw d economy lost $80 billion.
if GEJ was in power today, he never would have wasted 6 months to appoint ministers n charge a new economic direction to deal with falling international oyel price. d naira will at most be at N250, thus d depletion of foreign reserve to defend d naira will not even arise.

Booked.