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Tag: External reserves

  • In 2022, External Reserves Drop By $3.43bn

    In 2022, External Reserves Drop By $3.43bn

    Nigeria’s external reserves dropped by $3.43bn in 2022, according to figures obtained from the Central Bank of Nigeria.

    The CBN disclosed in its movement on external reserves figures that the reserves which stood at $40.52bn as of the end of December 31, 2021, ended December 29, 2022 at $37.09bn.

    At the last Monetary Policy Committee meeting of the CBN in November, the Governor, CBN, Godwin Emefiele, said, “The committee observed the decline in the external reserves position, as gross external reserves decreased by 1.34 per cent at end-October 2022 to $36.87bn, from $37.39bn at end-September 2022.

    “With indications of lower crude oil prices in the futures market, members urged the Bank to sustain its current policies to boost non-oil exports in order to shore up the external reserves.”

    A member of the MPC, Robert Asogwa, said, “The recent drop in external reserves is, however, linked to the decline in oil exports even at a time of higher oil prices.

    “Interestingly, the publicised reduction in oil thefts across the Niger delta and the rising prospects of increased overseas remittances would likely boost the gross external reserves to a large extent in early 2023.”

  • External reserves slides to 4 months low at $39.98bn

    External reserves slides to 4 months low at $39.98bn

    The external reserves have fallen below the $40bn mark to the lowest point in over three months, figures from the Central Bank of Nigeria have revealed.

    The reserves dropped to $39.82bn on February 2, 2022 from $40.53bn as of December 30, 2021.

    The country’s external reserves had jumped from $39.82bn on October 15, 2021, to a high of $41.83bn on October 29, on the back of Eurobond inflow and the International Monetary Fund’s Special Drawing Right.

    The country’s external reserves rose by $5.12bn last year from $35.37bn at the end of 2020, according to CBN data.

    At the first Monetary Policy Committee meeting this year, the Governor, Central Bank of Nigeria, Godwin Emefiele, said, “Members also noted the continued improvement in the external reserves despite ongoing foreign exchange market pressures. The reserves stood at $40.2bn as at December 2021.”

    Emefiele had earlier noted that the external reserves rose to over $41bn in October 2021, supported by demand management measures, Eurobond inflow of $4bn and the IMF’s SDR.

    A former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, said a lot of money came from the diaspora by November and December.

    He said insecurity had affected investments in the country and productivity was low.

    According to him, the productivity level must rise in the country before it can have a significant impact on the external reserves.