CBN buildingThe foreign reserves have declined to $45 billion as at October 11, data from the Central Bank of Nigeria (CBN) website has shown. Analysts have projected a further fall of the reserves to $44 billion by year-end. The reserves were at $45.4 billion as at September 30, as against $46.8 billion on August 30, reflecting a loss of $1.4 billion in 30 days, before declining to current level.

The CBN data showed that the reserves were on a steady and continuous decline throughout September.

The reserves were at $46.82 billion on September 2, 446.81 billion on September 3 and $46.77 billion on September 9. The decline continued on September 19, when they stood at $46 billion before dropping to $45.9 billion on September 20.

The reserves stood at $47 billion on August 19, dropped to $46.9 billion on August 21. The reserves were at $47.7 billion on July 1, and dropped to $47 billion on July 15.

They stood at $48.33 billion on June 24, declined to $48.15 billion on June 27 and closed the month at $48 billion. The CBN data showed that the reserves were at $43.83 billion at end of December, 2012 as against $68 billion in August 2008 before the global financial crises impacted negatively on them.

The CBN had consistently maintained that inflow into the reserves was not consistent with the oil prices and, this underscores the need for tighter fiscal controls around oil revenues.

The apex bank has also said there was urgent need to pursue policies that would foster macro-economic stability, economic diversification as well as encouraging foreign capital inflows. It said a higher rate of retention of oil revenues should facilitate the efforts at maintaining exchange rate stability as an antidote to imported inflation even without excessive reliance on monetary tightening measures.


Information from The Nation was used in this report.