The country’s external reserves have fallen by 0.15 per cent to $39.56bn this month, according to latest data from the Central Bank of Nigeria. The reserves had stood at $39.62bn in August and amounted to $45.66bn in September last year.

Currency traders attributed the fall to draw downs by the central bank to support the ailing naira currency.

In a bid to save the naira from further depreciation, the CBN had depleted the reserves by $17.58bn within the first half of this year as it battled to maintain a stable exchange rate.

The central bank sold a cumulative sum of $17.58bn to 50 currency dealers at the Retail Dutch Auction System between January and June this year.

The CBN sold the highest amount of dollar in the month of March, offering $3.58bn; while it sold $2.58bn in May, the least for the period under review.

The bank also sold $3.1bn in the month of February, making it the second highest amount in the period; while it sold $2.98bn in the month of January.

The statistics showed that $2.62bn was sold in April, while $2.75bn was sold in June.

In summary, the CBN sold $9.628bn during the first quarter of the year and $7.952bn in the second quarter at the Foreign Exchange Dutch Auctions.

The $17.58bn sold in the first half of the year is about 65 per cent higher than the $10.68bn sold in the corresponding period of last year.

The amount the central bank sold at the Wholesale Dutch Auction System in the first six months were January, $833m; February, $1.2bn; March, $1.9bn; April, $2.15bn; May, $2bn; and June, $2.65bn.

Financial and economic analysts said the 65 per cent increase in demand for foreign exchange during the first half of the year was too enormous, pointing out that the unfortunate situation was responsible for the huge depletion of the nation’s foreign reserves.

Punch