DAILY POST
Amid persistent foreign exchange fluctuation, Nigeria’s foreign exchange reserves have fallen by $1.6 billion to $32.97 billion since the Central Bank of Nigeria tried to unify the country’s foreign exchange rates.
Recall that on June 14, the apex bank announced new forex regulations which required Deposit Money Banks to remove the rate cap on the naira at the official Investors’ and Exporters’ Window of the foreign exchange market to allow free float of the national currency against the dollar and other global currencies.
Since then, the naira and foreign currency reserves have recorded a decline. As of June 15, the country’s gross FX reserves stood at $34.62 billion.
Meanwhile, according to recent data from CBN, the foreign exchange reserves fell to $32.97 billion as of December 1, 2023.
Inadequate foreign exchange reserves have partly been blamed for the FX crisis in Nigeria.
For instance, in a recent Africa Outlook report, the Economist Intelligence Unit disclosed that Nigeria doesn’t have enough in its FX reserves to back up its exchange rate unification policy.
