Oyetunji Abioye

The country’s external reserves have depleted further to a record-low of $24.8bn, according to the latest data posted on the Central Bank of Nigeria’s website.

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 $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 Tuesday, the local currency traded at 307.25 against the greenback.

At the parallel market, the naira, which has been under persistent pressure, closed at 424 to the dollar on Tuesday, after trading at 425 against the United States currency on Monday.

The external reserves fell by 2.86 per cent to $25.45bn on August 29, 2016, up from the $26.2bn it recorded at the end of July.

Year-on-year, the reserves have fallen by 18.9 per cent. They had fallen by 0.4 per cent at the end of July, down from the $26.34bn recorded on June 29.

The foreign exchange reserves stood at $26.42bn on May 28, down by 9.2 per cent year-on-year.

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

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

The CBN’s Monetary Policy Committee announced plans to adopt a flexible exchange rate policy after the external reserves fell to $26.56bn on May 23.

The external reserves have lost over $2bn this year. The nation recorded a balance of payments deficit of 1.4 per cent in its Gross Domestic Product at the end of 2015 owing largely to its first current account deficit (three per cent of the GDP) in over a decade.

The nation’s external reserves reduced by $6.7bn within a period of 21 months, the Minister of Budget and National Planning, Senator Udo Udoma, said on March 23.

http://punchng.com/external-reserves-drop-24bn/

Why is it decreasing? ?
Have workers salary been increased? ?

Are there new infrastructures? ?

Have dey increased alawee??

Just keeping it short n sweet...it's d fault of the previous administration and PDP, dazall!

That is all we'll hear if we demand an accounting.

Jokerman:
Why is it decreasing? ?
Have workers salary been increased? ?

Are there new infrastructures? ?

Have dey increased alawee??

It decreased because our reserved asset is in form of dollars in the CBN coffer.... When the dollar depreciates so will the external reserve... And in all.. It's virtually due to Buhari's poor economic policies and emefiele's absurd and ludicrous monetary policies...

they should bring home this $
24bn reserve and share it to every single Nigerian equally.stop reserving when we are starving.

I laugh in Naira defence. Nigerians produce next to nothing in terms of quantity and quality so we can't earn dollar forex to satisfy our unquenchable apetite for foreign goods. The habit of flooding fx market with cheap dollar by CBN in a bid to keep its price down A.K.A. Defending the Naira isn't sustainable any longer as petrodollar isn't flowing in in excess for now. Nigerians should start thinking of alternative exports.

eunisam:
they should bring home this $
24bn reserve and share it to every single Nigerian equally.stop reserving when we are starving.

If the money can be shared why has govt been borrowing then?

This is what Emefiele is trying to prevent unknown to Kemi

Reduce interest rate and see our FOREX reserve vanish or become $1$ = #1000





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Standing5:
I laugh in Naira defence. Nigerians produce next to nothing in terms of quantity and quality so we can't earn dollar forex to satisfy our unquenchable apetite for foreign goods.

Nigerians are paying dearly for not taking technological education serious.

A nation that imports all her mobile phones and electronic gadgets will always end up like Greece.

Shym3xx hope you understand now.


Pls read my 2 mentions of you in the other thread I created.

EternalTruths:



Nigerians are paying dearly for not taking technological education serious.

A nation that imports all her mobile phones and electronic gadgets will always end up like Greece.

Shym3xx hope you understand now.


Pls read my 2 mentions of you in the other thread I created.

When America went into recession it was because of what? Having reserve in itself doesn't guarantee economic performance.

EternalTruths:



Nigerians are paying dearly for not taking technological education serious.

A nation that imports all her mobile phones and electronic gadgets will always end up like Greece.

Shym3xx hope you understand now.


Pls read my 2 mentions of you in the other thread I created.

Even Greece is better. Nigeria was created for the benefit of English children and great grand children and you see the results of what has happened. Any challenge to that (aka Biafra, MEND, etc) is quickly labeled a threat and the propaganda for 1 Nigeria continues so bankers in the West can chop.

Its only we African nations that continue to buy into the fake hype and complain year in year out about the obvious. I know people know the right thing, but if it doesn't benefit your people, you will refuse it.

tuniski:

When America went into recession it was because of what? Having reserve in itself doesn't guarantee economic performance.

Do you know how many companies left US for China.?

Do you know that fewer and fewer Americans are technologically empowered.?


Why do you think Americans complain of job security.?




Technological empowerment remains the key to addressing economic crisis.

I always maintain that foreign reserves balance is seriously overrated, its important, but overrated.

the west has conditioned us to believe that the more money we save WITH them, the better for our economy.

as mighty as the US economy is, it has less than $300m in reserve.

the main challenge Nigeria has with development is the way it is structured geopolitically & economically. as long as states are not fully empowered to harness their own resources & bear responsibilities for income generation & development, they will continue to depend on free handouts from FG.

ivandragon:
I always maintain that foreign reserves balance is seriously overrated, its important, but overrated.

the west has conditioned us to believe that the more money we save WITH them, the better for our economy.

as mighty as the US economy is, it has less than $300m in reserve.

the main challenge Nigeria has with development is the way it is structured geopolitically & economically. as long as states are not fully empowered to harness their own resources & bear responsibilities for income generation & development, they will continue to depend on free handouts from FG.

Copy n Paste mentality. I hate when people consult textbook like oracle.

Jokerman:
Why is it decreasing? ?
Have workers salary been increased? ?

Are there new infrastructures? ?

Have dey increased alawee??

my dear ask them oh..this country Yaff tired me

The Problem is our imports surpasses our exports now than before, I remember when Jonathan was the president, he made effective pro-people policies that ensure farming goods were abundantly produced, so they were able to raise the Nigerian exports. I believe there is no country that is independent, even China, they also import, but the problem is allowing imports to surpass exports. As a result of the contraction, foreign firms have liquidized, so they need forex to move their liquid capital out of the nation. Did you read the news of how MTN moved about $12b out of Nigeria? where did they source the simoleon from?

And also, foreign investors are now deterred of investing because if the harsh business environment, poor infrastructure, lack of basic amenities, multiple taxations, unfavorable forex policies and so on. they now resorts to buying bonds instead of making investments thay will see them inject more to the FX reserves. This admimistration needs more people like Emefiele, thank God Buhari didn't sack him, like he did to some other technocrats that GEJ appointed.

EternalTruths:



Nigerians are paying dearly for not taking technological education serious.

A nation that imports all her mobile phones and electronic gadgets will always end up like Greece.

Shym 3xx hope you understand now.


Pls read my 2 mentions of you in the other thread I created.

Standing5:
I laugh in Naira defence. Nigerians produce next to nothing in terms of quantity and quality so we can't earn dollar forex to satisfy our unquenchable apetite for foreign goods. The habit of flooding fx market with cheap dollar by CBN in a bid to keep its price down A.K.A. Defending the Naira isn't sustainable any longer as petrodollar isn't flowing in in excess for now. Nigerians should start thinking of alternative exports.

There was a post I made before and I would like people like you to see it.

blueto:
Very hypocritical govt deluding the Zombies. they launched the “change begins with me” mantra when they themselves are not changing.

the President have adjured Nigerians to change their ways before expecting the change that they promised. So lets say we actually bought the idea, it means we all(including the president) should follow such trend.

But my question is, while Nigerians are changing, what stops the president from changing?

Let us use the “buy locally made goods to grow naira” mantra that is now a platitude as a case study.
My perusal has shown that the president is currently breaching the significance of such mantra.

The president keeps seeking medical care in the UK .His children also schooled there. He talks more to foreign media houses than local ones, buys his shoes and wristwatches from the most expensive stores abroad, enjoy foreign trips than visit to his local constituencies but comeback home to preach that his citizens should embrace local goods.

He forgot that he is also a citizen, which ought to comply and lead with examples.

Standing5:
Copy n Paste mentality. I hate when people consult textbook like oracle.

you are seriously mentally challenged...

do you think everyone is like you that waits to be fed with propaganda & then come to spew rubbish here?

by the way, what do you consult? so you come here writing junk you do not even know about?

EternalTruths:



Do you know how many companies left US for China.?

Do you know that fewer and fewer Americans are technologically empowered.?


Why do you think Americans complain of job security.?




Technological empowerment remains the key to addressing economic crisis.

You keep beating around the bush without making sense. China improved because it closed it borders to imports.
A Chinese man gets a loan at less than 5% to produce his goods and you want a Nigerian to compete with an interest rate greater than 20%? How is that possible?.
You basic economic knowledge is lacking.

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free fall under buhari

This thing be dropping everyday yet we don't see what they're using it for. We can't even get to buy sef WTF is wrong with this country naaaaa? Haba!

All is not well oooo!

Jokerman:
Why is it decreasing? ?
Have workers salary been increased? ?

Are there new infrastructures? ?

Have dey increased alawee??

Because we used it to bail out useless states like Ekiti State.

What do we expect?

Nigeria is almost downright broke. No wonder government was pampering Mark Zucker when he came. Mark Zucker is richer than Nigeria

Hmm

.

basilo101:
Oyetunji Abioye



http://punchng.com/external-reserves-drop-24bn/

hmm how do you expect to see high yield of reserve when there isn't any tangible source of revenue and moreso the nation is headed by clueless goons that seems blaming is there primary function.

basilo101:
Oyetunji Abioye



http://punchng.com/external-reserves-drop-24bn/

hmm how do you expect to see high yield of reserve when there isn't any tangible source of revenue and moreso the nation is headed by clueless goons that seems blaming is there primary function..

bigtt76:
This thing be dropping everyday yet we don't see what they're using it for. We can't even get to buy sef WTF is wrong with this country naaaaa? Haba!

as in ehn...they took away subsidy o...yet the reserves has dropped by 4-5 billion since they took over...something's not right with this govt...