Nigeria’s Foreign Reserve Drops To $39.9bn As Naira Declines Further
Nigeria’s foreign reserve declined to $39.86 billion as of the end of February 2022, representing a 0.44 percent fall from $40.04 billion recorded as at January, as the naira plunged further to N578 per dollar.
Data from the daily external reserve from the Central Bank of Nigeria (CBN), showed that the reserve dropped to $39.86 billion at the end of February 2022.
According to the data from the CBN, the decline of the reserve represents the fourth consecutive monthly decline in the country’s reserve level.
The fall in the reserve is amid the surge in Global oil price, where the commodity traded above $110 a barrel in light of supply disruptions following Russia’s invasion of Ukraine.
Brent crude jumped 7.80 percent to $112.70 per barrel – up nearly $8 per barrel from Tuesday and the highest since February 2011.
West Texas Intermediate Crude futures proportionally rose 7.54 percent to $110.95 a barrel.
Meanwhile, the local currency, the naira depreciated further against the United States dollar at the parallel market.
Figures obtained from members of the Bureaux De Change operators (BDCs) in Lagos revealed that the naira traded at N578 to the dollar compared to N577/$1 the local currency has traded in recent days, representing a decline of N1 or 0.2 percent.
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