P
ProfRem
Guest
Nigeria’s external reserves, which have been on a downward slide since May 5, 2017, fell to $30.5 billion on May 25, indicating a decline of $494 million in 21 days, data on the Central Bank of Nigeria (CBN)’s website showed yesterday.
The reserves have been rising steadily since March 28, moving from $30.3 billion to $30.988 billion as at May 4
The steady decline in the external reserves comes even as analysts at Financial Derivatives Company Ltd stated in a note issued at the weekend that: “We expect a further slowdown in the pace of accretion of external reserves, as forward contracts mature, and oil prices remain below $52pb.”
According to the analysts, external reserves of $30.49 billion will cover imports for a period of 6.83 months.
Analysts attribute the steady fall in the reserves to CBN’s aggressive interventions in the foreign exchange market aimed at boosting naira and stabilising the exchange rate.
The reserves have been rising steadily since March 28, moving from $30.3 billion to $30.988 billion as at May 4
The steady decline in the external reserves comes even as analysts at Financial Derivatives Company Ltd stated in a note issued at the weekend that: “We expect a further slowdown in the pace of accretion of external reserves, as forward contracts mature, and oil prices remain below $52pb.”
According to the analysts, external reserves of $30.49 billion will cover imports for a period of 6.83 months.
Analysts attribute the steady fall in the reserves to CBN’s aggressive interventions in the foreign exchange market aimed at boosting naira and stabilising the exchange rate.
