CBN naira defence depletes foreign reserves by $3.17bn – Re-Ignite

CBN naira defence depletes foreign reserves by $3.17bn

The country’s foreign reserves which
stood at $38.07bn at the end of 2019 fell to $34.9bn at the end of the first
quarter of 2020.

To make forex available to operators
in the economy, the Central Bank of Nigeria sold forex from the country’s
foreign reserves to achieve stability of the exchange rate and provide
liquidity despite the low revenue from oil sales.

During the last Monetary Policy
Meeting, the Central Bank Governor, Godwin Emefiele, said, “External reserves
position stood at $34.9bn in March 2020 as against $38.07bn in December 2019.

“The depletion in external reserves
was driven by FX sales to Bureau De Changes and Import & Export window as
well as dwindling oil receipt.