Nigeria’s foreign exchange reserves dropped to $47.303 billion on Wednesday to $47.303 billion, representing its lowest level in three months.

Available data on the nation’s foreign reserves position provided by the Central Bank of Nigeria showed that the reserves, which stood at $47.697 billion on July 11, dropped by $394 million to ebb at $47.303 billion yesterday.

According to the data by the apex bank, the reserves, which rose from $47.333 billion in April 24 to $47.846 billion on May 11, later peaked at $47.789 billion on June 29 before dipping again marginally by $102 million on July 11 to stand at $47.697 billion.

Analysts, while commending the apex bank for its sound management of the foreign reserves, believe that the latest drop in the reserves’ value may not be unconnected with some interventions by the bank in the increasingly dynamic foreign exchange market.

It would be recalled that he Monetary Policy Committee (MPC) of the Central Bank of Nigeria at the end of its meeting on Tuesday in Abuja, expressed optimism that the external reserves’ outlook would be brightened in the months ahead.

Specifically, the Committee in the communiqué No 119 issued at the end of its two-day meeting on July 24 hinged its projection of further accretion to the external reserves in the near term on favourable crude oil prices.

To forestall external shock on the economy that might be triggered by sudden volatility in the international oil market, the committee advised the fiscal authorities to build fiscal buffers against possible oil price shocks in the future.

It also cautioned on the rising monthly revenue distribution by the Federation Account Allocation Committee to the tiers of government, noting that such fiscal expansion portends risks to the economy if there is no reserve buffers to absorb shocks in the future.