NIGERIA’S EXTERNAL RESERVES SHED $3.17BN IN 2020 AMID WEAKER FOREIGN EXCHANGE EARNINGS

NIGERIA’S EXTERNAL RESERVES CONTRACTED BY $3.17 BILLION OR 8.23% THIS YEAR AS PROCEEDS FROM SALES OF CRUDE OIL, WHICH PROVIDES MORE THAN 90% OF ITS FOREIGN EXCHANGE EARNINGS, WERE LARGELY DEPLETED BY AN OIL CRASH AS WELL AS THE CORONAVIRUS PANDEMIC.

THE EXTERNAL RESERVES, WHICH OPENED WITH A BALANCE OF $38.53 BILLION AT THE BEGINNING OF THE YEAR, STOOD AT $35.36 BILLION AS OF 30TH DECEMBER, DATA OBTAINED FROM THE CENTRAL BANK OF NIGERIA (CBN) WEBSITE ON THURSDAY SHOWED.

HAVING BEEN ON A DECLINE IN RECENT TIMES, THE EXTERNAL RESERVES OF AFRICA’S BIGGEST ECONOMY WERE UP BY $380 MILLION FROM $34.98 BILLION AS OF 24TH DECEMBER TO $35.36 BILLION AS OF WEDNESDAY.

THE STRAIN ON NIGERIA’S EXTERNAL RESERVES WORSENED BETWEEN JULY AND SEPTEMBER EVEN THOUGH THE GLOBAL ECONOMY SAY SOME EASING IN ECONOMIC ACTIVITIES