Nigeria’s foreign reserves have dropped by $990.98 million over the past three weeks, latest information on the reserves hosted on the Central Bank of Nigeria’s (CBN’s) website has indicated.
The external reserves, which stood at $47.11 billion at the end of last month, declined to $46.128bn on August 24, 2018.
A few days earlier, precisely on August 20, the reserves stood at $46.257 billion while on August 18, it grossed $46.373 billion.
The changes in the reserves could be linked partly to the forex being used by the CBN to fund the Forex market segments on weekly basis and the sluggish performance of the oil sector over the past few months.
For instance, the apex bank had last Thursday and Friday, injected a total sum of $543.22 million and CNY 63.21 million into the inter-bank foreign exchange market in its sustained drive to ensure Naira exchange stability.
Again, while the international oil prices remained relatively stable in the past months, Nigeria’s crude oil output and supplies to the international oil market have not been optimal.
The last report by the NBS on the oil sector’s contribution to the GDP for the second quarter showed that in the Q2, 2018 overall GDP growth was constrained by the oil GDP, with crude oil and gas production contracting by -3.95 percent compared to 14.77 percent in Q1 2018 and 3.53 percent in Q2 2017
The CBN has linked the changing national foreign reserves value to a combination of factors, including the changing pattern of international trade, institutional changes in the economy and structural shifts in production of the sectors.