Nigeria’s Foreign Reserve Depreciated By $544million In The Last One Week. According to Daily Independent, the CBN posted figures on their website of the country’s foreign reserves dropping from $35,740,495,640 as at December 11 to $35,196,352,296 as at last week, December 18.
The central bank governor issued a statement recently on the currency crisis, saying:
“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.”
In my opinion, these are signs of even further depreciation of the Naira which currently sits at 184.55 for a dollar as at this morning. Experts say the Naira might sit at about 202 for a dollar by January 2015.