CBN Says External Reserves Declined By $1.5 Bilion In Four Months

The Central Bank of Nigeria (CBN) has revealed that the country’s external reserves fell by $1.5 billion in four months.

According to data from the CBN, the external reserves which stood at $36.73 billion as of the end of February 20 fell to $36.68 billion as of the end of February 27.

It fell from $35.5 billion to $35.25 billion and $35.2 billion as of the end of March, April and May 19 respectively.

Speaking at the March Monetary Policy Committee meeting in Abuja, the Governor of  Central Bank of Nigeria, Godwin Emefiele, while noting the marginal decline in the level of gross external reserves said it was, “reflecting the downtrend in crude oil prices, as global uncertainties persist.”

Also speaking, a member of the MPC, Folashodun Shonubi, said the impact of the slowdown in the global crude oil market on the dwindling fortunes of the domestic oil sector had been further compounded by inherent inefficiencies in the structure of the sector in Nigeria.

“This has been a major challenge to both the fiscal and external sectors, as government revenue remains at dismally low levels and accretion to reserves is reduced to a near standstill.

“The situation has precipitated twin issues of increasing deficit and rising debt that is occasioned by a significant shortfall in revenue, as well as low foreign exchange supply, resulting in persisting pressure on the exchange rate.”