Nigeria’s external reserves fell by 3.6% in August 2022, to $39.024 billion, down from $40.520 billion on December 31, 2021.
Pressure on the Nigerian foreign exchange reserves has forced it to shed a whopping $1.496 billion Year to date, despite the surge in crude oil prices.
Amid Forex Crisis, Nigeria’s External Reserves Falls To $39 Billion In August 2022
Despite the apex bank’s interventions in the forex market, the Nigerian economy is starved of foreign exchange as currency traders continue to complain about restricted forex liquidity, causing the local currency to depreciate more in the FX market.
Although there are a number of CBN policies and programs aimed at encouraging inflows, Nigeria’s inability to attract foreign currencies through export value, diaspora remittances and investments have resulted in severe FX shortage in the country, encouraging arbitrage in the parallel market.