Nigeria’s external reserves resume falling streak after $36.59bn high

Nigeria’s foreign exchange reserves have pared some of the recent gains after hitting a 2020 high of $36.59 billion last month.

The reserves fell by $346.95 million to $36.25 billion on June 23 from $36.59 billion on May 29, the latest data obtained by Markets Reporters from the Central Bank of Nigeria showed.

The reserves, which closed at $33.52 billion at the end of April, surged by over $3 billion in May.

The country’s external reserves had come under pressure in recent months, falling to a record low of $33.43bn on April 29.

But the reserves started rising after the International Monetary Fund disbursed $3.4bn loan under its Rapid Financing Instrument to the country for it to tackle the impact of COVID-19.

Nigeria, Africa’s top oil producer, has been hard hit by the coronavirus pandemic, which caused a sharp drop in the price of oil, its main source of government revenue.

Oil and gas represents only about 10 percent of its GDP, but accounts for about 50 percent of government revenues and over 90 percent of export earnings.