External reserves of the government lost 640 million dollars in May, dropping from 34,88 million dollars in April 28 to 34,24 billion dollars in May 28.
Figures acquired from Tuesday’s Central Bank of Nigeria show that in previous weeks, reserves fluctuated.
Godwin Emefiele, Governor of the CBN, commented on the dip at the latest meeting of the Monetary Policy Committee, “This reflects sales to the foreign exchange market and third-party payments.”
In March, after falling from $34.99 billion as of 1 March to $34.82 billion as of 31 March, reserves lost $178 million.
READ ALSO: Naira Devalues To 410.25/$1 – CBN
In February, reserves fell by 1 billion dollars and fell from 36.19 million dollars as at February 1 to 35.09 billion dollars as at February 26.
The CBN stated in its January economic report, “Official external reserves fell as a result of reduced foreign currency revenues.
“External reserves amounted to 35,44 billion dollars at the end of January 2021, a 2.8% and 3.5% decline from 36,46 billion dollars in December 2020 and 36,73 billion dollars in January 2020.”
Recall that, the Nigerian naira has been devalued to N410.25 per dollar by the Central Bank of Nigeria (CBN).
The implementation of the Nigerian Autonomous Foreign Exchange Rate (NAFEX), also known as the Investor and Exporter (I&E) FX window rate of N410.25 as the official exchange rate to the dollar, reaffirmed the depreciation of the local currency.
The previous official rate of N379 to the dollar was withdrawn from the apex bank’s website about two weeks ago. The naira was trading at N487 to the dollar on the parallel market yesterday.