Nigeria’s foreign exchange reserves drop by 2.7%

*Foreign reserve.

*Foreign reserve.

*As CBN introduces flexible exchange rate

Kunle Kalejaye

24 May 2016, Sweetcrude, Lagos — Data from the Central Bank of Nigeria, CBN ‎ revealed that the country’s foreign exchange reserves have dropped by 2.7 percent.

The reserve declined from $27.308 billion to $26.56 by May 20 from a month earlier.

CBN Governor, Mr. Goodwin Emefiele, therefore, said the country’s economic recession is imminent.

Speaking on behalf of the Monetary Policy Committee, he said there is need to adjust rate noting that CBN will work on flexible exchange rate which banks will adopt to allow for the inflow of foreign exchange and needed investment.

“The noted that it was time to introduce greater flexibility in the foreign exchange market. The committee re-affirmed commitment toward maintenance of price regulation.

“The committee said in the period of stagflation, the options are very limited, the committee decided on the least risk option. The MPC voted unanimously to adopt a flexible exchange rate policy,” Emefiele said.

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