According to the CBN’s data on the movement of reserves, the reserves fell to $33.32bn as of the end of June 30 from $34.23bn on May 31.

The reserves stood at $34.88bn at the end of April 30.

Financial experts have expressed the need for the government to attract more foreign direct investment into the country and stimulate domestic production to attract more foreign exchange and reduce the demand on forex for importation.

At the last Monetary Policy Committee meeting, the CBN Governor, Godwin Emefiele, while speaking on the decline in external reserves, said, “This reflects sales to the foreign exchange market and third-party payments.”

The CBN, in its January economic report, said, “As a consequence of the lower foreign exchange receipts, the official external reserves declined.

“External reserves stood at $35.44bn at the end-January 2021, a decrease of 2.8 per cent and 3.5 per cent from $36.46bn in December 2020 and $36.73bn in January 2020.”

Meanwhile, the naira was bought and sold at the parallel market at N499/$ and N500/$ on Thursday, according to figures obtained from the naijabdcs.com, the CBN’s official website for the Bureau de Change operators.

The CBN recently adopted the NAFEX rate of N410/$ as its official exchange rate.

sweetshisha:
Something is fvcking wrong with Buhari, Zainab Ahmed and Godwin Emefiele

Price of crude oil is relatively high

Crude oil price according to the budget is higher so we should have excess forex

Forex is not released to importers of many products


What the fvck is depleting our fvcking foreign reserves??!

Beancounter93:


1. Increasing subsidy payments as it is becoming more expensive to keep fuel at a cheap price with rising oil prices meaning increase in the cost of refining fuel. Then subsidy makes it unprofitable to refine at home because domestic refinreis cannot set their prices and thus cannot make a profit on refining petrol here.

2. Oil has not been as high as we want it . We should have had oil at $133 for a balanced budget not the $80 it is ( breakeven price)

3. Because oil has not been as high as we want it to be we have to borrow to keep our heads above water. Paying back our debts is difficult.

Recall that the oil price has been volatile since 2014. Atimes it has been as low as $24 and as high as $80. Meanwhile our breakeven oil price rose from $122 in 2012 to $139 in 2017.and now $133. When oil is not as high as you need it you take loans to cover the difference
And then you have to pay back the loans.

4. Tax level low. Our tax to gdp ratio is 6.1%. Only 30% of the taxable population pays taxes. As such we are far more dependent on oil for everything (A big reason why NNPC boss Kyari is so insistent on subsidy removal is because it is taking a big bite from government revenues...meaning that government cannot spend money on other things until it has fed the subsidy monster)


5. Corruption and stealing at all levels of government. Inflated claims. Looting..Round tripping. You know the drill.

6. Failure to diversify the economy. Nigeria in particular loses billions to illegal mining. Agriculture is not at the level we need it to be to be a big exporter. And government talks a lot but does nothing. Rice pyramids does not mean that Nigeria has displaced Brazil and Thailand as a major rice producer.

7. Buhari. ( before anyone calls me his supporter which I ain't)

8. Insecurity, boko etc which drives off investors

Beancounter93:


1. Increasing subsidy payments as it is becoming more expensive to keep fuel at a cheap price with rising oil prices meaning increase in the cost of refining fuel. Then subsidy makes it unprofitable to refine at home because domestic refinreis cannot set their prices and thus cannot make a profit on refining petrol here.

2. Oil has not been as high as we want it . We should have had oil at $133 for a balanced budget not the $80 it is ( breakeven price)

3. Because oil has not been as high as we want it to be we have to borrow to keep our heads above water. Paying back our debts is difficult.

Recall that the oil price has been volatile since 2014. Atimes it has been as low as $24 and as high as $80. Meanwhile our breakeven oil price rose from $122 in 2012 to $139 in 2017.and now $133. When oil is not as high as you need it you take loans to cover the difference
And then you have to pay back the loans.

4. Tax level low. Our tax to gdp ratio is 6.1%. Only 30% of the taxable population pays taxes. As such we are far more dependent on oil for everything (A big reason why NNPC boss Kyari is so insistent on subsidy removal is because it is taking a big bite from government revenues...meaning that government cannot spend money on other things until it has fed the subsidy monster)


5. Corruption and stealing at all levels of government. Inflated claims. Looting..Round tripping. You know the drill.

6. Failure to diversify the economy. Nigeria in particular loses billions to illegal mining. Agriculture is not at the level we need it to be to be a big exporter. And government talks a lot but does nothing. Rice pyramids does not mean that Nigeria has displaced Brazil and Thailand as a major rice producer.

7. Buhari. ( before anyone calls me his supporter which I ain't)

8. Insecurity, boko etc which drives off investors

sweetshisha:
Something is fvcking wrong with Buhari, Zainab Ahmed and Godwin Emefiele

Price of crude oil is relatively high

Crude oil price according to the budget is higher so we should have excess forex

Forex is not released to importers of many products


What the fvck is depleting our fvcking foreign reserves??!

Beancounter93:


1. Increasing subsidy payments as it is becoming more expensive to keep fuel at a cheap price with rising oil prices meaning increase in the cost of refining fuel. Then subsidy makes it unprofitable to refine at home because domestic refinreis cannot set their prices and thus cannot make a profit on refining petrol here.

2. Oil has not been as high as we want it . We should have had oil at $133 for a balanced budget not the $80 it is ( breakeven price)

3. Because oil has not been as high as we want it to be we have to borrow to keep our heads above water. Paying back our debts is difficult.

Recall that the oil price has been volatile since 2014. Atimes it has been as low as $24 and as high as $80. Meanwhile our breakeven oil price rose from $122 in 2012 to $139 in 2017.and now $133. When oil is not as high as you need it you take loans to cover the difference
And then you have to pay back the loans.

4. Tax level low. Our tax to gdp ratio is 6.1%. Only 30% of the taxable population pays taxes. As such we are far more dependent on oil for everything (A big reason why NNPC boss Kyari is so insistent on subsidy removal is because it is taking a big bite from government revenues...meaning that government cannot spend money on other things until it has fed the subsidy monster)


5. Corruption and stealing at all levels of government. Inflated claims. Looting..Round tripping. You know the drill.

6. Failure to diversify the economy. Nigeria in particular loses billions to illegal mining. Agriculture is not at the level we need it to be to be a big exporter. And government talks a lot but does nothing. Rice pyramids does not mean that Nigeria has displaced Brazil and Thailand as a major rice producer.

7. Buhari. ( before anyone calls me his supporter which I ain't)

8. Insecurity, boko etc which drives off investors

Ykc2:
amadioha go display una yash for open market

sweetshisha:
Something is fvcking wrong with Buhari, Zainab Ahmed and Godwin Emefiele

Price of crude oil is relatively high

Crude oil price according to the budget is higher so we should have excess forex

Forex is not released to importers of many products


What the fvck is depleting our fvcking foreign reserves??!