As Nigeria’s foreign reserves fell to $34.9 billion at the end of the Q1, 2020 against $38.07 billion at the end of Q4, 2019
Nigeria currency Naira has lost ground at the parallel market also known as the black market now selling at N456 to S1 as demand to meet fx payment obligations increase due to scarcity.
Also at the Investors and Exporters (I&E) window,naira depreciated to N386.33.The local currency weakened by N0.33 against the dollar when compared to the N386 to a dollar it traded last week Friday.
At bureau de change, naira traded at N450 to a dollar on Monday a differential of N6 from today’s offer price.
The depletion in external reserves was driven by FX sales to Bureau De Changes and Import & Export window as well as dwindling oil receipt.
According to CNB Governor,Godwin Emefiele ,“The current level of reserves is estimated to finance about 6.30 months of imports.”
At the MPC meeting,Emefiele said, “Based on the current downturn in oil prices, staff projections indicate that output in 2020 would be less than earlier envisaged
The exchange rate at the I&E window is different from the Central Bank of Nigeria’s published exchange rate, which currently stands at N380/$1.