Nigeria’s forex reserves plunge to 11-month low
Nigeria’s foreign exchange reserves have plummeted to the lowest level in 11 months despite the sharp rise in the price of oil, which accounts for more than 50 percent of the government’s foreign earnings.
The reserves, which have been on a downward trajectory in recent months, fell to $34.71 billion on Mar. 9, the lowest point since May 12, 2020 – then the country had $34.78 billion, according to the Central Bank of Nigeria.
From a high of $36.52 billion on Jan. 25, the reserves declined to $34.92 billion on Mar. 3, the CBN data showed.
The country’s forex reserves lost $1.1 billion in February, falling from $36.19 billion at the start of the month to $35.09 billion on Feb. 26.
Oil prices have rising significantly in recent months, with Brent, the global oil price benchmark, rising to $ 67.76 per barrel as of 7:23pm GMT on Wednesday, up from around $51 per barrel on Dec. 31.
