Nigeria’s foreign reserve has depreciated by $544million in the last one
week. According to Daily Independent, figures posted on the website of
the Central Bank of Nigeria CBN shows the nation’s foreign reserves
stood at $35,740,495,640 as at December 11, but fell to $35,196,352,296
as at last week, December 18.
This fall in foreign reserves is coming despite the devaluation of
Nigeria's Naira. According to the Central Bank Governor, Godwin
Emefiele, a large sum form the foreign reserves is being spent in
defending the Naira from falling following its devaluation.
According to the governor,
“The CBN took the decision that it would be sub-optimal to continue to
use up the country’s reserves in defending the Naira. This decision was
right because neither the Central Bank nor the Federal Government is in
control of the major factors causing the depreciation of the nation’s
currency. In fact, the Russian Central Bank has abandoned its defence of
the currency and allowed its depreciation, but only after it was said
to have spent over $90 billion in defending the currency.”.