Central Bank of Nigeria CBN has disclosed that the country’s foreign reserves have depreciated to $34.74 billion. This information was obtained at the apex bank website yesterday.
According to the information as of Monday, 8th March 2021, Nigeria’s foreign exchange reserves stood at $34.74 billion, representing a year-to-date decline of $632.9 million 1.79%.
The last time Nigeria’s reserve position was at this level was 11th May 2020, exactly 10 months ago. However, the amount is still comfortable for the long term import position for the economy.
Some analysts have ascribed the continuous depreciation of the country’s external reserves to the intervention of the CBN in the forex market to stabilise the exchange rate.
It would be recalled that CBN had introduced the “Naira 4 Dollar Scheme” policy penultimate week to attract dollar into the economy.
The policy stipulates that the CBN through the commercial banks will pay to diaspora remittance recipients the incentive of N5 for every $1 remitted by a sender and collected by the designated beneficiary.
The scheme took effect on Monday, March 8, 2021, and will end by 8th May 2021.
The policy targets encouraging inflows of diaspora remittances to Nigeria which is expected to reflect in the nation’s foreign reserve and by extension the exchange rate.
A quick glance at the information from the World Bank shows that Nigeria is the seventh most elevated beneficiary diaspora remittance in 2019, with an all-out inflow of $23.81 billion behind Egypt $26.78 billion and France $26.84 billion.
The information likewise shows that Nigeria got an absolute amount of $110.48 billion in settlements somewhere in the range of 2015 and 2019.
In spite of the tremendous diaspora inflows and late energizing oil value; the outside hold is yet to hit the $40 billion edges as it was as of November 2019.
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