External reserves drop further, lose $99m

Data obtained from Central Bank of Nigeria reveals that the nation’s foreign exchange reserves have declined further, losing $99m to close at $47.65bn

Industry analysts have attributed the recent decline in the external reserves to the exit of foreign portfolio investors.

The decrease in the reserves balance is likely as a result of the circular issued by the CBN on Monday, stating its decision to increase the frequency of sales of forex to the BDCs.

Meanwhile, Nigeria’s overnight and open buy back rates have each reduced by 1.92 per cent.

According to data from the FMDQ, the exchange rate at the investors and exporters’ foreign exchange window as of May 30 depreciated to N362/2$ from N361/25$.

The daily turnover remained constant, while the debt balance reduced by N43bn.

The official exchange rate of the naira to the US dollar remained constant at N305.95 to $1.


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