The nation ’ s foreign exchange reserves have dropped to a seven - month low , losing $1. 02bn in the 13 days to Monday , latest data from the Central Bank of Nigeria showed on Wednesday .
The external reserves , which stood at $44. 30bn on September 28, fell from $44. 02bn on October 2 to $43bn on October 15.
The reserves, which rose to a high of $47. 865bn on May 10, have dropped by $4. 86bn in five months .
As of March 5, the reserves stood at $43. 12bn , up from $42. 75bn on March 2, according to the CBN data.


Last week, the International Monetary Fund said Nigeria needed to be cautious about the use of its foreign exchange reserves, saying oil prices could decline at any time .
The IMF , in its latest Regional Economic Outlook said tighter global financial conditions resulting from faster - than-envisaged monetary policy normalisation in advanced economies, or a sudden shift in investors’ sentiment could constrain financing and growth for many sub- Saharan African countries.

“ Higher US interest rates and a stronger dollar also heighten risks, as observed historically in emerging and developing economies. In particular , the probability of a large reversal in foreign flows in sub- Saharan Africa is significantly higher the US interest rates go up, ” the fund added .
The Director, Corporate Communications , CBN, Mr Isaac Okorafor, explained early this month that the external reserves had been going down recently because of higher yields in the United States .

Okorafor, however , gave an assurance that at the current level of $44bn, the reserves were sufficient to take care of the nation ’ s import bill for 17 to 20 months , much more than the three - month standard recommendation .
According to him , some foreign investors who have gone to emerging markets to take advantage of the high yields have had to go back to the US because of better opportunities there at the moment .


“ The drop in our forex reserves is basically as a result of the capital flow reversals arising from rising interest rates in the United States . You will recall that the Federal Reserve has been raising rates and has even given guidance that this would continue in the near term, ” he added .

Source: https://punchng.com/external-reserves-drop-by-1bn-in-13-days/

Nigeria leaders are not serious. Instead of investing in power and create enabling environment for industries to thrive, which will in turn create jobs, they prefer to pump our hard earned money to stabilise the Naira.

How long will they continue to deplete our external reserves to support the Naira?

Even the crude oil we export, we don't have direct control on the price in the international market.


CBN's Emefiele said that stabilising the Naira is more important to them than savings.

things are happening

Election mon...

Watch how here would be overrun with Buhari critics. But when the reserves was appreciating in consecutive months they said " fake stats" "where are the results" "only on paper" .

These are the kind of indices that determine the course of an economy. It takes a little time for the effects to trickle down but as of now we are still in safe waters (concerning the reserves oh!) .

........explained early this month that the external reserves had been going down recently because of higher yields in the United States .

Understandably.
Let's work for a great Nigeria.

The most clueless Government in the history of mankind.

I weep for those still supporting these clueless herders.

post=72189450:
ok

My friend, we may not agree but make an unbiased contribution this topic. It is not "ok".

what

Okay......

OkaNaUbe:
Nigeria leaders are not serious. Instead of investing in power and create enabling environment for industries to thrive, which will in turn create jobs, they prefer to pump our hard earned money to stabilise the Naira.

How long will they continue to deplete our external reserves to support the Naira?

Even the crude oil we export, we don't have direct control on the price in the international market.

Shut up

This is not good

buhari has invested all the money on cows

Buhari style of economics is to safe money for 3 years and spend it in the fourth year

They better be careful.

We can't afford another crash

Their election money. They I'll still take another1 billion usd

Election money sharing culpable. Make dem sha let usd fall to N300

Where are the praisesingers?

OkaNaUbe:
Nigeria leaders are not serious. Instead of investing in power and create enabling environment for industries to thrive, which will in turn create jobs, they prefer to pump our hard earned money to stabilise the Naira.

How long will they continue to deplete our external reserves to support the Naira?

Even the crude oil we export, we don't have direct control on the price in the international market.


CBN's Emefiele said that stabilising the Naira is more important to them than savings.

Good points you make.

I guess it is because a stable currency is good for a good economy

g

OkaNaUbe:

Even the crude oil we export, we don't have direct control on the price in the international market.

Which country has direct control?

Ehiscotch:
Watch how here would be overrun with Buhari critics. But when the reserves was appreciating in consecutive months they said " fake stats" "where are the results" "only on paper" .

These are the kind of indices that determine the course of an economy. It takes a little time for the effects to trickle down but as of now we are still in safe waters (concerning the reserves oh!) .

Some of us are funny... How dis ppl tend to make excuses and change d narrative wen it suits dem is what Nigerians find annoying.. Does it mean all d period d reserves increased it was as a result of lower yields in d US? Wen it's working it is d govt, but wen it isnt working find something to blame abi? Below is what d same CBN said about d increasing reserves few months ago..

The CBN attributed the continued accretion to the country's reserves to the Bank's effort at vigorously discouraging unnecessary importation and reducing the nation's import bill, inflow from oil and non-oil exports.

https://allafrica.com/stories/201806020104.html

Ehiscotch:
Watch how here would be overrun with Buhari critics. But when the reserves was appreciating in consecutive months they said " fake stats" "where are the results" "only on paper" .

These are the kind of indices that determine the course of an economy. It takes a little time for the effects to trickle down but as of now we are still in safe waters (concerning the reserves oh!) .

Yeah, but we still need to save. Oil is still very unstable

Venezuela did not save. See where they are now

This is why I hate PDP. . .We must hold them responsible for wasting all the money we had there in March. They are the reason why our external reserve is nothing to write home about. They have succeeded in looting all the money we had there in March. APC be trying hard to fix Nigeria but PDP be milking us dry. Saraki's poor leadership at the senate is reason why we have this problem. I hereby implore Oshio-mole to go ahead and help us unseat Saraki. Only this can return us to the path of greatness.

God bless PDP.
God punish APC and everyone that plans on voting that 80 years old failure.
God bless all the Atikulated Nairalanders.

2019

Buhari is a dead end road !!!! What do you do when you get to the dead end of a road ? You either stay at the dead end and die or change route to a new road!!!! Buhari is a dead end road going nowhere and it's time to to change him

Lifeless people come and see oo, everywhere is crashing

Uglymugg:
Which country has direct control?

The point is that crude oil is the only major product we produce. We don't have comparative advantage because other countries produce too. If you understand what I mean.

...and the money given to Fayemi to kick start his administration and rubbish Fayose the more. Soon, Fayose's sympathizers in the state will be the ones to call for his head because of the pace Fayemi will work at.