External reserves drop to $24.21 bn


There are indications that the value of Naira would depreciate further as Nigeria’s external reserves hit $24.21 bn, its lowest in 11 year.
The value of dollar is expected to rise as the international currency might be scarce at the official inter bank spot market following this development, which many economic experts believe might create panic in the money market.
According to the Central Bank of Nigeria, the foreign exchange reserves fell by $600m in two weeks before shedding $1bn in four weeks. Also, the reserves fell from $25.8bn on August 16 to $24.8bn on September 16. It decreased by $600m from the $25.4bn recorded on August 31 to $24.8bn on September 16, the current CBN data revealed.
The spate of decline in the external reserves follows the apex bank daily interventions at the interbank/official foreign exchange market in recent weeks, as chronic dollar shortage continues to weigh on the economy.