- CBN has said that Nigeria's external reserves have dropped by $990m in 3 weeks
- Data from CBN's website revealed that the external reserves, which stood at $47.11bn at the end of July, declined to $46.128bn on August 23
- The apex bank noted that the evolution of the forex market in the country had been influenced by a number of factors
The latest data from the Central Bank of Nigeria (CBN) has shown that the nation's foreign exchange reserves have fallen by $990.98m in August.
The Punch reports that data from CBN's website on Sunday, August 26, showed that the external reserves, which stood at $47.11bn at the end of July, declined to $46.128bn on August 23.
Legit.ng gathered that the CBN noted that the evolution of the forex market in the country had been influenced by a number of factors such as the changing pattern of international trade, institutional changes in the economy and structural shifts in production.
A former president, Association of National Accountants of Nigeria, Sam Nzekwe, who described oil as the nation’s major revenue earner, said the reserves had grown in recent months because oil price was increasing, and production was constant.
He, however, said political uncertainties had led to a decline in foreign investment as many investors were taking their funds out of the country.
“So, I believe that what must have happened is that those of them whose investments are short-term like shares and bonds, have found their way out of Nigeria,” he added.
He observed that most of the investors had not really been investing in the real sector.
According to Nzekwe, generally, a lot of people are not sure of what will happen during elections.
He added that although the government was investing in infrastructure, the investments in infrastructure were mostly being constructed by foreigners with foreign materials.
He said: “So basically, it will have some impact on the reserves but I believe that the major one is the foreign investment in the financial market and they are all short-term investments.”
PAY ATTENTION: Read the news on Nigeria’s #1 new app
Meanwhile, Legit.ng had previously reported that data obtained from the Central Bank of Nigeria (CBN) on Wednesday, March 7, showed the nation’s external reserves hit $43.2 billion on Tuesday, March 6, The Punch reports.
After commencing this year at $38.77bn, the foreign exchange reserves had recorded a four-year high at $42.76 billion on March 2. This year the foreign reserves have gained about $3.99 billion or 10.3 per cent. In December 2017, the reserves had moved from $38.77 billion to $40.69 billion in January 2018.
The foreign exchange buffer of the CBN has continued to increase recently over steady increase in global oil prices and federal government Eurobond borrowing, among others.
Can N1 ever become $1 again at Forex Market? Watch Nigerians respond to this question - on Legit.ng TV