Nigeria's foreign reserve loses $1.02bn in 13 days

Latest data released by Nigeria's Central Bank has revealed a negative change  of value in the country's external reseerves, with the figure which was $44.30bn as at September 28, falling to $43bn on October 15.

This represents a drop to a seven-month low in the nations foreign exchange reserves which earlier in the year rose to $47.865bn on May 10 (a loss of $4.86bn in five months).

Last week, the International Monetary Fund (IMF) issued a warning to the country, about the use of its foreign exchange reserves, due to the current uncertainty of crude oil prices.

A tighter global financial conditions resulting from faster-than-envisaged monetary policy normalisation in advanced economies, or a sudden shift in investors' sentiment could constrain financing and growth for many sub-Saharan African countries, it noted during recent Regional Economic Outlook

"Higher US interest rates and a stronger dollar also heighten risks, as observed historically in emerging and developing economies. In particular, the probability of a large reversal in foreign flows in sub-Saharan Africa is significantly higher the US interest rates go up," the fund added.

Meanwhile, CBN's Director of Corporate Communications, Mr Isaac Okorafor earlier in the month attributed the current decline to higher yields in the United State.

Okorafor said, "The drop in our forex reserves is basically as a result of the capital flow reversals arising from rising interest rates in the United States. You will recall that the Federal Reserve has been raising rates and has even given guidance that this would continue in the near term."

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