The country’s foreign reserves have continued its downward trend, dropping by $5.09bn from $38.53bn on January 2, 2020 to $33.44bn as of April 28, 2020, latest statistics from the Central Bank of Nigeria have revealed.

According to the figures, the reserves dropped from $39.8bn on November 11, 2019 to $39.24bn on December 13, 2019. This is after the fall by $1.26bn from $41.76bn on October 2 to $40.5bn as of the end of October.

The reserves dropped by $482.18m from N45.14bn as of July 8 to $44.65bn on August 8, 2019.

During the last Monetary Policy Committee meeting of the banking sector, the Central Bank Governor, Mr Godwin Emefiele, said the committee noted the weakened revenue position of the Federal Government, arising from the sharp drop in oil prices.

He reiterated the need for government to urgently reduce reliance on oil revenue by gradually diversifying the economy and improving tax collection.

On the domestic front, he said available data on key macroeconomic variables indicated the likelihood of subdued output growth for the Nigerian economy in 2020.

He said, “Based on the current downturn in oil prices, staff projections indicate that output in the 2020 would be less than earlier envisaged.

“The major downside risks to this outlook, however, include the continued spread of COVID-19; further decline in crude oil prices and the reduction in accretion to external reserves.”

Emefiele said the headwinds would, however, be partly mitigated by the timely and effective response of the monetary and fiscal authorities in containing the spread of the COVID-19 pandemic, the recalibration and adjustment of the 2020 federal budget to the revised thresholds.

fineguy11:
This is bad. Eventually,CBN will have to float the exchange rate,coz we still a long way to oil price recovery.

sassysure:
One of the strength of every country especially developing countries is foreign reserve.
Make they kukuma finish the whole thing na.
Buhari has bad luck written all over him since the1980s.

They said if some people enter in a house, their aura make it glow while when some enter the same house, it look haunted.
Buhari's aura has been haunting Nigeria. Very bad market. Those way dey go see those people wey dey see future, none of them told them.buhari is bad market?

From being a robot( the drama surrounding him even make me doubt if he is alive) to being a burden.

sassysure:
One of the strength of every country especially developing countries is foreign reserve.
Make they kukuma finish the whole thing na.
Buhari has bad luck written all over him since the1980s.

They said if some people enter in a house, their aura make it glow while when some enter the same house, it look haunted.
Buhari's aura has been haunting Nigeria. Very bad market. Those way dey go see those people wey dey see future, none of them told them.buhari is bad market?

From being a robot( the drama surrounding him even make me doubt if he is alive) to being a burden.

iluvdonjazzy:
Why will this thing be dropping often when the reserve is not in liquid but in cash, US DOLLARS, somebody should please explain.

kikero:


Oil is our major earner, and the price of oil has been on a downward trend for some time.

Right now, oil is at $24.

And it is from our oil earnings that we get money to...you guessed it...fund the reserve.

Falling oil prices means that the country does not have enough cash to save...so we have to start relying more on the reserve.

(As an example. in 2014, Saudi had $750billion in its reserve, when oil prices started falling. By 2015, the reserve was at $600billion....150bn lost due to falling oil prices. Alarm bells ringing in Riyadh)

iluvdonjazzy:
in other words, is the country withdrawing some money from the reserve?

kikero:


Certainly.

One of the reasons why we have a reserve is for times like this...

The problem is, for how long can we rely on the reserve? Part of the reason why we are taking loans is because we don't want to eat too much into the reserve.

That's why Nigeria should stop relying on selling oil, and selling agric produce and minerals. Best to sell industrial products.

ChimaAdeoye:


They are bleeding our reserves and at the same time piling up unsustainable debts!
How can Nigeria survive this reckless regime??

sassysure:
One of the strength of every country especially developing countries is foreign reserve.
Make they kukuma finish the whole thing na.
Buhari has bad luck written all over him since the1980s.

They said if some people enter in a house, their aura make it glow while when some enter the same house, it look haunted.
Buhari's aura has been haunting Nigeria. Very bad market. Those way dey go see those people wey dey see future, none of them told them.buhari is bad market?

From being a robot( the drama surrounding him even make me doubt if he is alive) to being a burden.