Foreign reserves drop to two-year low at $38.6 billion

The foreign exchange reserves have hit two-year low at $38.6 billion, in December 2019, figures from the Central Bank of Nigeria (CBN) has revealed.

The foreign reserves level stood at $39.8 billion by November 29, 2019, compared to $45.1 billion as at end of the month of May 2019.

Brings to a total loss of $6.52 billion between the month of June and December 2019.

The CBN had consistently maintained that inflow into the reserves was not consistent with the oil prices and, this underscores the need for tighter fiscal controls around oil revenues.

The apex bank has also said there was urgent need to pursue policies that would foster macro-economic stability, economic diversification as well as encourage foreign capital inflows.

It said a higher rate of retention of oil revenues should facilitate the efforts at maintaining exchange rate stability as an antidote to imported inflation even without excessive reliance on monetary tightening measures.

First published on