The nation’s foreign exchange reserves, which had increased significantly in recent months to hit the $30bn mark, fell for the first time this year on Tuesday.

Latest data from the Central Bank of Nigeria showed on Wednesday that the external reserves dropped to $30.349bn on Tuesday from $30.352bn on Monday.

The reserves, which rose 17.4 per cent from last year when they closed at $25.843bn, hit a low of $23.89bn on October 19, 2016.

The foreign exchange reserves had on December 14 dropped to $25.041bn from $25.048bn the previous day but it increased to $25.043bn the next day.

Continuing their upward trend since then, the reserves crossed the $30bn mark on March 8, 2017 when it closed at $30.014bn from $29.967bn on March 7, the CBN data showed.

Meanwhile, industry experts have described the Tuesday’s decision of the Monetary Policy Committee of the CBN to leave key rates including the benchmark interest rate unchanged as a step in the right direction.

The Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu, said, “It is in line with our expectations. They couldn’t have afforded to loosen because of the pressure that will bring on foreign exchange market. Likewise, they couldn’t have afforded to tighten because the economy is in a recession, and we have not come out of recession. So, you cannot tighten further.”

“I think what they did was the first thing they could have done given the current situation of things.”

The Director-General, West African Institute for Financial and Economic Management, Prof. Akpan Ekpo, said, ‘’It is the right decision because we are not yet out of recession; so let the fiscal side do its work. The MPC decision is perfect; that was what I expected. They need fiscal and structural policies to get us out of recession.”

http://investorsking.com/external-reserves-drop-for-first-time-since-december/

Let it fall abeg. Savings is for people that are alive.

Why build external reserves when the nation needs it to survive?

bad news

Hmmmm... hope the drop wont stagnate the CBN's inflow to crash the dollar rate?

I have been against this new policy from the beginning... Build ur reserves to 120 billon before I start this thing ...by then our local manufacturing would have taken shape ..we won't die if we don't school abroad ..or eat/use foreign goods

when the bmc crew are already celebrating on the front-page that the price of dollars is falling while the national reserves is rising. liars by profession. Nigeria's problems are structural and have been persistent since independence, worsened since the war ended. No amount of currency manipulations would end the recession and high inflation. if the country disintegrates, the smaller nations would fare better.

abouzaid:
when the bmc crew are already celebrating on the front-page that the price of dollars is falling while the national reserves is rising. liars by profession. Nigeria's problems are structural and have been persistent since independence, worsened since the war ended. No amount of currency manipulations would end the recession and high inflation. if the country disintegrates, the smaller nations would fare better.

in your dreams...smaller nations will do far worser..

imagine lagos closing all her borders to none yorubas.......the rest of west africa would be finished....

lagos is our financial hub...their are no others in africa,except in egypt....

its simple logic...

the FG is pumping more money into the forex market & its only natural that reserves drop.

the problem here is that PMB's Social Media Idi*ots are too daft to know that this was the same scenario in the past that led to the depletion of the reserves coupled with massive payments on subsidy.

bantudra:


in your dreams...smaller nations will do far worser..

imagine lagos closing all her borders to none yorubas.......the rest of west africa would be finished....

lagos is our financial hub...their are no others in africa,except in egypt....

almost all the great nations of the world are small largely homogeneous nations, Singapore was just a sleepy port when it broke out of Malaysia yet today it has surpassed Malaysia beyond description.saying that there's no other financial hub in black Africa is denying the economic and development miracles taking place in Ghana, Botswana, Angola south Africa etc. even the Liberian dollar is now more than three times more valuable than the naira.disintegration is the option out or we would continue downhill in this mess.

ivandragon:
its simple logic...

the FG is pumping more money into the forex market & its only natural that reserves drop.

the problem here is that PMB's Social Media Idi*ots are too daft to know that this was the same scenario in the past that led to the depletion of the reserves coupled with massive payments on subsidy.

that's the best summary, they're now reverting back to the same techniques used by okonjo iweala.

ivandragon:
its simple logic...

the FG is pumping more money into the forex market & its only natural that reserves drop.

the problem here is that PMB's Social Media Idi*ots are too daft to know that this was the same scenario in the past that led to the depletion of the reserves coupled with massive payments on subsidy.

Yh true talk but my question is 'this CBN intervention fund usually pumped into the forex market, how sustainable is it? Cos at some point this foreign reserve may get depleted more esp if the Oil price drops. Or what do u think??

This administration has been able to gradually shore up our external reserves even in the middle of an oil price crash, while the previous ineffective buffoon and his 40 thieving cronies left external reserves at virtually $0, right in the middle of an oil boom...

Now we now where the Forex money is coming from

But they will still deny it anyways.

ivandragon:
its simple logic...

the FG is pumping more money into the forex market & its only natural that reserves drop.

the problem here is that PMB's Social Media Idi*ots are too daft to know that this was the same scenario in the past that led to the depletion of the reserves coupled with massive payments on subsidy.

Nobody questioned the external reserves during GEJs tenure.

The query was always about the Excess Crude Account.

This will cause dollar rise.

PMB has spent plenty money to treat his prostrate problem

This isnt a significant drop. However diversification needs to be done and urgently too.

No cause for Alarm
Nothing is permanent in life.
The most important thing is to make life better
for the citizens with the money available

ToriBlue:
This will cause dollar rise.

Not really. As long as dollars pump in the market is steady and sustainable but I doubt. Our import is still very much higher than export.

This is just the major fear of the sustainability of the naira as more dollars is doled out to sustain the fall.

Currency spectators be lyk!!!!

Not bad... Dollar has fallen

2muchopoTBdope:



Yh true talk but my question is 'this CBN intervention fund usually pumped into the forex market, how sustainable is it? Cos at some point this foreign reserve may get depleted more esp if the Oil price drops. Or what do u think??

While hoping the reserve don't deplete even more while oil prices rise or at the least remain stable its eminant that owed subsidies be paid off but ensure not to incure another subsidy owings.

After which we must ensure that our refineries are up and doing to produce at full capacity if not 95%.

If this is sustainable the CBN will have little need to pump in intervention Fund

amoto94

My concern is sustainability of foreign exchange supply. The Shale has upped production following Donald Trump wins, disrupting OPEC successful consensus, hence, plunging oil below $50/barrel for the first time in three months.

Even though, oil was pegged at $45 a barrel in the 2017 budget, there is possibility of price slipping below that benchmark if OPEC failed to take into consideration US Shale production during September cut. However, our oil revenue will take a slight hit for now but I don't think it will have a significant impact on current progress considering the fact that just about $2.6 billion has been sold so far by the CBN, which is below what we generate in a single month. Therefore, the CBN still has enough arsenal to hurt speculators and close forex gap.

mrvitalis:
I have been against this new policy from the beginning... Build ur reserves to 120 billon before I start this thing ...by then our local manufacturing would have taken shape ..we won't die if we don't school abroad ..or eat/use foreign goods

Local manufacturing? Well government should just focus on light first. That's the only way we can guarantee sustained productivity and attract foreign investors in their numbers.

Electricity and security

1984

Let Emefiele keep pimping dollars. E go soon clear us for eyes.

gbegemaster:
Let it fall abeg. Savings is for people that are alive.

Lmao!!!! We are aLive o!!!!

YES OOO

mrvitalis:
I have been against this new policy from the beginning... Build ur reserves to 120 billon before I start this thing ...by then our local manufacturing would have taken shape ..we won't die if we don't school abroad ..or eat/use foreign goods

mrvitalis:
I have been against this new policy from the beginning... Build ur reserves to 120 billon before I start this thing ...by then our local manufacturing would have taken shape ..we won't die if we don't school abroad ..or eat/use foreign goods

Just say you want people to die, in our history we've never reached even 70 billion and you are saying 120billion, please carry your policy go somewhere else...