Nigeria’s external reserves dropped 0.48 per cent to $37.95 billion between May 5, and April 28, 2014, according to latest figures released by the Central Bank of Nigeria (CBN) even as analysts forecast a further depleting of the reserves.
As at April 28, the reserves stood at N38.14 billion.
Having risen to $38.14 billion on April 28, 2014, the reserves reversed the rising trend and declined to $38.12 billion on May 2, 2014, before recording a 0.43 per cent drop to $37.95 billion on May 5, 2014, the highest decline in weeks.
Month-on-month, the figures remain almost the same as the reserves stood at $37.95 billion as at April 4, 2014.
The CBN led by its acting governor, Mrs Sarah Alade, has continued to express its resolve to support the naira even at the expense of declining external reserves. Yesterday, the naira closed lower at N161.56 to the dollar compared to N161.12 to the dollar which it sold at the interbank market last week Friday. The value of the naira remained stable at the official end, selling for N155.73 to the dollar.
Although the naira had recorded a four-month high at the beginning of last week, selling at N158.70 at the interbank market, it declined despite the $648.68 billion forex sales by the CBN at the twice weekly Retail Dutch Auction.
Yesterday’s auction result was yet to be released as at press time.
The apex bank had in the previous week sold $738.45 million at its two Retail Dutch Auctions having offered $800 million. Last week, it sold $345.88 million at its Monday auction, while it sold $338.80 million at the Wednesday auction last week.
Meanwhile, lending rates at the interbank market went in different directions. Overnight rate Nigeria Interbank Offer Rate (NIBOR) which was 10.5917 per cent at the beginning of last week had risen to 10.6250 per cent and further rose to 10.6333 per cent, while the longer tenured lending rates closed lower. The 30-day, 60-day and 90-day rates dropped to 12.2526, 13.0073 and 14.0066 per cents yesterday from 12.6645, 13.3109 and 14.3360 per cents last week respectively.
Source: Leadership (by Bukky Idowu)
