External reserves dip from October high
By Jeph Ajobaju, Chief Copy Editor
External reserves dipped 13 straight weeks to $39.82 billion on 2 February 2022, falling below $40 billion over three months from the peak of $41.82 billion on 29 October 2021, according to the Central Bank of Nigeria (CBN) data.
Reduction since 15 October – when the amount was $39.82 billion – reversed 12 weeks of increase on the back of $4 billion Eurobond auction proceeds in September and rising crude oil prices.
The fall reached $40.2 billion on 31 December 2021, persisted through the first three weeks of 2022 down to $40.37 billion on 19 January, and continues to drop to the current $39.82 billion on February 2.
CBN figures show, however, that the foreign reserves rose by $5.12 billion in 2021 from $35.37 billion in 2020.
__________________________________________________________________
Related articles:
External reserves bleed $1.43b, now $40.39b
Foreign reserves increase by $5.15b YoY
External reserves at $40.5b go through worst cycle in 2 years
Auditor says fed Accountant withdrew N1.6b without approval
__________________________________________________________________
Impact of insecurity
“Members also noted the continued improvement in the external reserves despite ongoing foreign exchange market pressures.
“The reserves stood at $40.2 billion as at December 2021,” CBN Governor Godwin Emefiele said at the first Monetary Policy Committee (MPC) meeting this year.
He had earlier reiterated that the reserves rose to over $41 billion in October 2021, supported by demand management measures, Eurobond inflow of $4 billion, and Special Drawing Rights (SDR) of the International Monetary Fund (IMF).
Former Association of National Accountants of Nigeria (ANAN) President Sam Nzekwe told The PUNCH that lot of money came from the diaspora by November and December last year.
He said insecurity has affected investment, productivity is low, and productivity level must rise before it can have a significant impact on external reserves.
