CBN External Reserves Slides By 0.16% to $26.346billion

The external reserves of the Central Bank of Nigeria, CBN has dropped by 0.16 per cent to $26.346 billion as at July 14, 2016 from $26.390 which it was at the beginning of the month.

This development is coming even as the demand for dollar in Nigeria continues to rise leaving the naira to fluctuate at both the interbank and parallel market.

The CBN Boss, Godwin Emefiele, who made this known, however affirmed that the CBN still remains a major player at the interbank noted that other players are beginning to return to the market.

He said “We want a situation where over time the CBN will step back and more autonomous sources for generating foreign exchange will get into the market so that we can conserve our reserves.”

“We will like to see a situation where gradually within from the market and more and more people can come into the market and take over the determination of the pricing of the foreign exchange market in Nigeria”, Emefiele stated.

According to the acting President of the Association of Bureau de Change Operators Of Nigeria (ABCON) Aminu Gwadabe, banks have not been able to meet majority of the demands particularly from the informal sector, even as reserves continue to plunge.

Gwadabe explained that the demand coming to the BDC end of the market are majorly traders travelers who need as little as $300.