Forex reserves fall lower to $35.95bn

11 December 2014, Lagos – Nigeria’s foreign reserves fell to $35.95 billion as at December 8, down 19.3 per cent from a year earlier as the Central Bank of Nigeria (CBN) stepped up its defense of the currency.
The reserves of Africa’s biggest economy and top oil producer, according to Reuters, fell from $44.53 billion in same period last year. Reserves stood at $37.98 billion a month ago, central bank data showed yesterday. naira has fallen 12.1 percent against the dollar this year, including a one-off, eight percent devaluation by the central bank last month, as global oil prices plunged.
CBN Governor, Mr. Godwin Emefiele last week attributed it to the continuous pressure at the forex market to the dwindling supply of the United States dollars as well as a rise in the demand for the greenback.
Specifically, the CBN governor pointed out that the slide in crude oil price, which had led to a reduction of earnings to the country has also resulted to drop of US dollar inflow to Nigeria.
The central bank had spent huge assets from the foreign reserves in ensuring that the official exchange rate was maintained at its previous value of N155/$1.

– This Day

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