Nigeria’s Foreign Continue to Depreciate In The Face of Economic Recession, Reserve Drops To $25.209bn

Nigeria’s foreign continue to depreciate in the face of economic recession, low capacity oil production and dwindling revenue profile.

As at August 17, 2016, the reserve stood at $25.209bn from about $30.837bn recorded on August 13, 2015. It represented about $5.628bn reflected in a year period, CBN data showed as captured by DailyTrust Newspaper.

In a week, between August 11, and 17, the foreign reserve depreciated by $119.810m from $25.329bn to $25.209bn.
However in the same period of 2015, the reserve rose by $84.990million.

In the first week of August 2015, it peaked at $31.537bn as against the $30.837 recorded in the second week, by August 13, 2015.
This period largely witnessed currency control regime of the CBN which saw Nigeria’s foreign reserve to deplete hugely as the CBN struggled to shore up the Naira, a war it eventually lost to the liberation of the naira.

The CBN lately had introduced a number of measures to reduce the pressure on foreign reserve. Some of these measures including, restricting Foreign Exchange (FX) sales to 41 items, banned of sale of FX to BDCs, restrictions on daily FX spending on ATM abroad and other policies.