Nigeria’s foreign reserve has depreciated by
$544million in the last one week.
According to Daily Independent, figures posted on the website
of the Central Bank of Nigeria CBN shows the
nation’s foreign reserves stood at $35,740,495,640
as at December 11, but fell to $35,196,352,296 as
at last week, December 18.
This fall in foreign reserves is coming despite the
devaluation of Nigeria's Naira.
According to the Central Bank Governor, Godwin Emefiele, a large
sum form the foreign reserves is being spent in
defending the Naira from falling following its devaluation.
According to the governor,
“The CBN took the decision that it would be
sub-optimal to continue to use up the
country’s reserves in defending the Naira.
This decision was right because neither the
Central Bank nor the Federal Government is
in control of the major factors causing the
depreciation of the nation’s currency.
Infact, the Russian Central Bank has
abandoned its defence of the currency and
allowed its depreciation, but only after it
was said to have spent over $90 billion in
defending the currency.”.
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