Recent data obtained from the Central Bank of Nigeria shows that Nigeria's external reserves have continued a southward downhill climb dropping as much as $1.38 billion on this journey.
From $36.52 billion on January 25, 2021, the reserves fell to $35.14 billion exactly a
month later.
The decline represents a marginal one per cent over a 30-day watch, but it comes
amidst an environment that has witnessed increasing price of Brent crude, which has
rallied to about $66.28 a barrel in the global oil market.
The current shades of events that have shown a positive rally in the crude oil market amidst Nigeria’s near zero foreign direct investment and very poor foreign exchange inflows as a result of the country’s needle-eye exports, along with negative market reactions to the state of liquidity, and significantly, little or no shift in the naira-dollar exchange rates, has signposted the importance of keeping and maintaining appropriate FX buffers.