The Central Bank of Nigeria (CBN), in a data released on Thursday, said the nation’s foreign reserves dropped by $50.83 million within 10 days.
The external reserves fell from $35.75 billion it was as of October 2nd to $35.69 billion as of October 12.
The reserves which have not been stable in recent weeks, stood at $35.67 billion as of September 1st and climbed to $35.81billion as of September 17.
They had earlier decreased by $278.91 million from $35.87 billion on July 29 to $35.59bn on August 19.
The apex bank, in its monthly economic report for May, stated that, “Nigeria’s international reserves decreased marginally from $36.43bn at end-April to $36.19bn at end-May 2020.
“The net decrease in reserves was due to the sales of foreign exchange at the Secondary Market Intervention Sales and Investor and Exporter windows as well as payments to external creditors.
“Thus, the level of import cover for goods and services, decreased from 4.0 months in April to 3.9 months in May 2020, but remained above the IMF threshold of 3.0 months.
“A comparative analysis of reserves per capita in May 2020 showed that Nigeria’s reserves per capita was $176.58, compared to $889.73 for South Africa, $491.10 for Angola, $218.94 for Egypt and $24.10 for Ghana.”
The CBN projected that the country’s foreign reserves would be between $29.9 billion and $34.3 billion by the end of 2020.
“Sequel to the COVID-19 pandemic, the viability of the external sector in 2020 is expected to deteriorate, given the present worsening current account balance and depletion of external reserves driven, largely, by decelerating export receipts, particularly oil.
“Specifically, the degree of external reserves accumulation is expected to decelerate, as outflows are expected to outweigh inflows.
“As a result, external reserves are expected to lie between $29.9bn and $34.3bn at end-December 2020 (predicated on current declining oil price between $20 and $40),” the apex bank said.