In mid of 6th March, (February), the Currency (Naira) had exchanged at 473/$ at the parallel market. And at the Investors and also thr Exporters forex window, The Naira reached 415/$ that same Friday.
The Governor of CBN, Emefiele, who recently made a speech at a summit on the economy by Bank CEOs in Lagos, Nigeria, said the sudden drop in the country's crude oil earnings and also adding the associated reduction in foreign portfolio inflows significantly affected the supply of foreign exchange into the country Nigeria.
So in order to make good adjustment towards the decrease in supply of foreign exchange, He wair the Nigerian Currency, also deprecated at the official window, which was from 305/$ to 360/$ and now hovers around 410/$. Also the current figures that is been obtained from the CBN, has showed that external reserves dropped by $1.1bn in the month, February.
The reserves which was recorded to have stood at $36.19bn as of February 1st, 2021, suddenly fell to $35.09bn as of February 26th, 2021. Also The CBN Governor, added that Nigeria’s external reserves at $35bn was sufficient to finance the country’s 7 months’ imports.
Also Mr Emefiele (CBN Governor), Said with the current decline in the country's foreign exchange value or earnings, also the subsequent adjustments in the country's currency (Naira) vis-à-vis the dollar. So the CBN has continued to do their best as the went ahead to implement a demand management framework, designed to support improved production of items that can be produced in the country Nigeria, and to further the conservation of our external reserves in the Country Nigeria.
According to The CBN Governor, he said the above measure will help to prevent a significant decline in the country's reserves.
He concluded that the external reserves of the country, currently stand at over $35bn and according to him, it is sufficient to cover more than 7 months of the importation of goods and services into the country, and even though the international rule of thumb is for reserves to cover about 3 months of imports, said Emefiele.
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