Nigeria’s foreign exchange reserves have dropped by 1.64 billion dollar from 38.34 billion dollars on January 15, 2020 to 36.69 billion dollars on February 20.

The Central Bank of Nigeria, CBN announced that the reserves stood at 38.53 billion dollars on January 2, 2020.

According to the figures, the reserves dropped from 39.8 billion dollars on November 11, 2019 to 39.24 billion dollars on December 13, after falling by 1.26 billion dollars from 41.76 billion dollars on October 2 to 40.5 billion dollars as of the end of October.

CBN Governor, Godwin Emefiele has recently said Nigeria’s overdependence on crude oil for over 60 per cent of fiscal revenue and over 90 per cent of forex inflows meant that shocks in the oil market were transmitted entirely to the economy via the forex markets as manufacturers and traders who required forex for input purchases were faced with dwindling supplies.

He added that average monthly inflows of forex into the CBN fell from over 3.4 billion dollars in June 2014 to a low of 1.4 billion dollars in September 2016.