Nigeria’s external reserves have been depleted by $2bn in the last 10 weeks, latest data from the Central Bank of Nigeria has shown.
The data, posted on the central bank’s website, showed that the foreign reserves fell from $46.77bn on September 6 to $44.66bn on November 25, 2013.
The last time the reserves recorded $44.6bn was on January 12, 2013.
The external reserves had fallen to a nine-month low at $45.08bn on October 14.
The reserves had fallen to the $45bn mark on September 20, and had hovered around $45bn until November 8 when it dropped to the $44bn mark.
Between September 20 and October 9, the foreign reserves fell from $45.9bn to $45.1bn.
One week after dropping to $44.8bn on November 15, the reserves recorded $44.7bn on November 21.
According to financial analysts, the CBN’s stance to keep defending the value of the naira from the reserves might further deplete the amount in the reserves.
The Federal Government had targeted $50bn reserves by the end of 2012. But the reserves closed the year at $44.26bn on December 24, 2012, finishing $6bn below the government’s target.
Going by the rate of depletion, the external reserves might record below the $44.26bn it finished the year with in 2012.
Between May 2 and August 5, 2013, the foreign reserves dropped by $1.8bn from the peak of $48.85bn to $46.98bn.
However, the CBN recently dismissed claims that the reserves were experiencing a sharp decline.
The CBN Governor, Mr. Lamido Sanusi, said in spite of the uncertainties in the global economy, which had made major economies to cut interest rates in order to provide market liquidity, Nigeria’s external reserves would be invested in a currency mix that would optimise returns for the country.
He also allayed fears about the uncertainties in the Nigerian economy and stressed that the reserves could finance about 11 months of importation.
Sanusi had said, “The fundamentals of the Nigerian economy are still very strong and occasionally, there might be an increase or a decrease, but it has been hovering between $45bn and $47bn, and that is very strong.
“In Africa, it is either the second highest or third highest. I think it is the second highest only after Algeria, and that’s really very remarkable.”
Sanusi said the move to invest the reserves in other currencies other than the dollar was necessary in view of recent events in the global economy that had driven yields to historical low levels.
The central bank boss said since the financial crisis of 2008, reserves managers had come under increased pressure to find ways of enhancing income.
This development, he noted, had made the CBN to diversify its reserve portfolios by investing in the Chinese renminbi.
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