CBN Foreign Reserves Dropped to $33.23bn in Third Quarter of 2023

Nigeria’s external reserve has further dropped to $33.23 billion as at last October 5, according to data from the website of the Central Bank of Nigeria (CBN).

The fund in the reserve declined from $34.07 billion as at July 7.

The reserves continue its decline from $37.07 billion last January 3 to $34.22billion last June 26, before plunging to a little of $33 billion last week.

The sharp drop is blamed on the $1.81 billion paid in the past seven months as interests on external loans contracted by the Buhari administration.

According to CBN data, most of the debt servicing were done last June and July after the exit of the Buhari administration.

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Also, in the past three months, Tinubu administration paid N912.32 billion to reduce the loan that the Buhari administration took by way and means from the apex bank.

According to personal statements released by the CBN by Monetary Policy Committee members, as of July, accretion to external reserves remained weak while foreign exchange demand pressures persisted.

Former acting Governor, CBN, Folashodun Shonubi, had stated that, “Eventual stability of the foreign exchange market over the medium-term, will further help to achieve price stability.

“Besides, the recent removal of subsidy could have a favourable effect on price stability as increased crude oil receipts by the government will bolster reserves, engender exchange rate stability, and help to moderate inflation.”