BEVERLY HILLS, December 16, (THEWILL) – Nigeria’s foreign reserves have dropped to $34.85 billion as of December 14.
The country’s foreign reserves last suffered its lowest descent in April when it dropped to $33.4 billion following the COVID-19 pandemic and declining oil prices.
According to data released by the Central Bank of Nigeria (CBN), the country’s foreign reserves dropped $805 million from $35.656 billion as of November 4, 2020.
Nigeria’s foreign reserves stood at $38.5 billion as of January 2020, subsequently, it dropped to $36 billion the following month and beginning of March. The descent continued reaching $35 billion in late March and crashing further in April to $33 billion.
The country relies on its foreign reserves as a buffer for its local currency and also covers the country’s import obligations. The sale of crude oil has been Nigeria’s major source of foreign exchange over the years. Its other sources are foreign investments and external loans.
The Central Bank of Nigeria has devalued the Naira three times in 2020. The currency at the last check traded at N383 per dollar in the investors and exporters window, a 20 percent variance from the parallel market rate.
