Just in the last one week, Nigeria’s foreign reserve has depreciated by $544million. According to Daily Independent, figures that were 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. Godwin Emefiele, who is the central bank governor said; a large sum from the foreign reserves is being spent trying to defend the Naira from falling following its devaluation.
“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.” Emefiele said.