The nation’s foreign exchange reserves fell 15 per cent to $34.57 billion by October 5 compared to $40.75 billion at the same time a year earlier.

According to the Central Bank of Nigeria (CBN), the reserves have been declining, shedding 7 per cent from the middle of last month to the end of the month, as it tried to defend the naira.

“The current external reserves level is still adequate and is expected to remain robust in view of the favourable outlook for oil prices and output,” CBN Governor, Mallam Sanusi Lamido Sanusi, said at the last monetary policy meeting (MPC).

The country’s forex reserves have been under pressure since last month with strong local demand for the U.S. dollar by petroleum and rice importers, leading to a depreciation of the naira.

The naira last month fell to its lowest level in 13 months but has since firmed on support from the apex bank.

Analysts say reserves can finance more than 12 months of exports where 80 per cent of the country’s basic needs are sourced from abroad.


http://tribune.com.ng/index.php/news/11880-nigerias-foreign-reserves-drop-to-3457bn

Why our foreign reserves going down day by day, not increasing. But the price of oil is increasing is now $83 per barrel? Federal goverment need to give us credible explaination.