Nigeria’s Forex Reserves Drop 4-month Low

Nigeria’s foreign exchange reserves hit a 4-month low of $37.9 billion as of November 7, dropping by 3.99 per cent month-on-month after the Central Bank of Nigeria (CBN) sold dollars to banks to prop up the value of the naira.

In a data, published by the central bank on Tuesday, it showed that the reserves were at $39.55 billion on October 10. In July it stood at $37.89 billion.

The central bank last week said it will continue to defend the local currency, which has fallen six per cent so far this year on concerns about lower oil prices and an exit from the local debt and equity markets by offshore investors.

In a related development, the naira weakened slightly on the interbank market yesterday due to strong demand for dollars from foreign investors.

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