Nigeria’s external reserves, last week, fell for the fourth consecutive week to $35.67 billion even as the naira depreciated to N462 per dollar in the parallel market.
Data from the Central Bank of Nigeria (CBN) show that the reserves fell to $$35.672 billion on Thursday last week from $35.725 billion the previous week. This translated to week-on-week (w/w) decline of $53 million dollars, more than 100 percent increase from the $23 million w/w decline recorded in the previous week.
According to the CBN data, the reserves have been on the downward trend for four weeks since September 17th. It fell by $139 million to $35.672 billion last week Thursday from $35.811 billion.
Prior to the four weeks decline, the reserves rose steadily for two weeks, by $145 million to $35.811 billion on September 17th from $35.666 billion on September 2nd.
Investigations reveal that the sustained decline, especially at a time of relatively stable crude oil prices, might not be unconnected to the CBN’s dollar injection in the foreign exchange market in a bid to keep the exchange rate stable.
However, in spite of the intervention, the naira depreciated by N5 in the parallel market last week, though it remained stable at the Investors and Exporters (I&E) window.