The nation ’ s foreign exchange reserves have fallen to the lowest level in more than two months , the latest data from the Central Bank of Nigeria have shown .
As of November 10 , the forex reserves stood at $ 35 .63 bn , the lowest since August 24 .
The reserves , which have been on a downward trajectory in recent months , declined to $35 . 69 bn on October 28 from $ 35 .74 bn on September 30 .
Amid the economic fallout of the COVID - 19 pandemic, the nation ’s forex reserves fell to a record low of $ 33 .43 bn on April 29 .
But the reserves started rising after the International Monetary Fund disbursed $ 3 .4 bn loan under its Rapid Financing Instrument to the country to tackle the impact of the pandemic.
The CBN said in a recent report that the “ external reserves are expected to lie between $ 29 .9 bn and $ 34 .3 bn at end -December 2020 ( predicated on current declining oil price between $ 20 and $ 40 ) . ”
It said, “ Sequel to the COVID -19 pandemic, the viability of the external sector in 2020 is expected to deteriorate , given the present worsening current account balance and depletion of external reserves driven, largely , by decelerating export receipts, particularly oil .
“ Specifically , the degree of external reserves accumulation is expected to decelerate , as outflows are expected to outweigh inflows .”
The Managing Director / Chief Executive Officer , Financial Derivatives Company Limited, Mr Bismarck Rewane , said last week that with oil prices still under pressure , forex supply into the country would be further limited .
“ The CBN will maintain its forex rationing stance and intensify efforts to keep the naira stable . External reserves to likely fall towards $ 34 bn in the coming months . ”l
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