Nigeria External reserves fall by 4.82%

Central Bank of Nigeria, CBN, has announced that the nation’s external reserve has fallen by 4.82 per cent to $33.907 billion within the first 21 days of October.

According to data on the website of the apex bank, external reserves fell from $34.589 billion as at September 30 to $33.907 billion, reflecting a decline of $1.682 billion. The fall in reserves is being fuelled by dollar sales at the bi-weekly foreign exchange auction conducted by the CBN.

The apex bank sold $1.97 billion in the first 21 days in October, while demand was $2.16 billion. In September, the apex bank sold 3.626 billion at the foreign exchange auction in apparent bid to defend the naira following upsurge in demand to $4.392 billion.

Fitch Ratings lowered its outlook on Nigeria’s BB- rating to “negative” from “stable” on October 22, due to concerns about withdrawals from the excess crude account and a drop in foreign currency reserves. The decline in reserves increased the risk to the economy from any renewed drop in oil prices, Fitch said.