Forex scarcity due to falling crude oil price forced the Central Bank of Nigeria to access the country’s foreign reserves to make forex available in the economy; NIKE POPOOLA reports that this gulped $3.17bn in the first quarter.
The country’s foreign reserves which stood at $38.07bn at the end of 2019 fell to $34.9bn at the end of the first quarter of 2020.
To make forex available to operators in the economy, the Central Bank of Nigeria sold forex from the country’s foreign reserves to achieve stability of the exchange rate and provide liquidity despite the low revenue from oil sales.
The country’s foreign reserves which stood at $38.07bn at the end of 2019 fell to $34.9bn at the end of the first quarter of 2020.
To make forex available to operators in the economy, the Central Bank of Nigeria sold forex from the country’s foreign reserves to achieve stability of the exchange rate and provide liquidity despite the low revenue from oil sales.