Foreign Reserves Dips by $2.03bn in 5 Months

07 Jun Foreign Reserves Dips by $2.03bn in 5 Months

Nigeria’s foreign reserves depreciated by $2.03 billion in five months of 2022 on the backdrop of Central Bank of Nigeria (CBN) sustained interventions.

This was even as global crude oil prices recorded 67.02 per cent appreciation during the period.

According to numbers released by the CBN, Nigeria’s foreign reserves dropped to $38.48 billion as at May 31, 2022 compared to $40.52 billion it commenced 2022 amid steady increase in global oil prices.

At $38.48 billion as of May 2022, the foreign reserves dropped lowest since October 08, 2021 when it was hovering around $38.39 billion.

The monthly breakdown revealed that the foreign exchange buffer dropped by 943.07million in May 2022, the highest decline in a month, followed by $478.95 million decline in January 2022.

For the month of February and March, it also depreciated by $121.45 million and $317.8 million, respectively. However, in April, the foreign reserves added $41.5 million to close at $39.58 billion from $39.54 billion it opened in April 2022.

The decline in foreign reserves is coming on the backdrop of steady increase in global oil prices as gas costs soar amid fears of a global economic shock from Russia’s invasion of Ukraine.

The CBN in the numbers published on its official website disclosed that daily crude oil price has appreciated by 67.02 per cent in 2022 so far, reaching $133.73/barrel from $80.07/ barrel.