Report by the Central Bank of Nigeria (CBN), has shown that the country’s external reserves nosedived by $841.75m between July and September 2023.
The report also indicated that the movement of external money from the reserves which stood at $34.07bn as of July 7, 2023, fell to $33.23bn as of October 5, 2023 thereby showed that the External reserves fell by $2.85bn in the first half of 2023 due to external debt finance among other challenges.
The Nigeria apex bank had earlier announced that the reserves which commenced on January 3, 2023, at $37.07bn fell to $34.22bn at the end of June 26, 2023.
Statements released by Monetary Policy Committee members of the CBN further stated that as at July 2023, accretion to external reserves remained weak just as foreign exchange demand pressures consistently persisted.
Former acting Governor of the CBN, Mr. Folashodun Shonubi, had declared that eventual stability of the foreign exchange market over the medium-term, would assist to achieve price stability.
According to Shonubi; “Besides, the recent removal of subsidy could have a favourable effect on price stability as increased crude oil receipts by the government will bolster reserves, engender exchange rate stability, and help to moderate inflation”.
