Foreign reserves fall by $4.62 billion in 5 Months

Nigeria’s foreign reserves fell by $4.62 billion from $45.12 billion it closed in the month of May to $40.50 billion as at October 30 according to figures from the Central Bank of Nigeria (CBN) today.

The reserves has continued the trend in the last five months.

The CBN also disclosed in its economic report for third quarter of 2019 that the gross external reserves fell in the period under review.

The external reserves position would cover 5.2 months of import of goods and services or 9.2 months of import of goods only, based on the estimated value of import for the second quarter of 2019.

A breakdown of the external reserves by ownership showed that the share of federation reserves was 0.7 per cent; Federal Government reserves, 17.1 per cent; and the CBN reserves, $33.6 billion or 82.2 per cent of the total.

Experts attribute the downward trend of the reserves to lower crude oil prices and lower Foreign Portfolio Investors inflows.

The highest month closing figure recorded in 2019 is in the month of May.

Written by Oshioke Audu,