Nigeria’s forex reserves fall to lowest in three months

Nigeria’s foreign exchange reserves fell 0.16 percent month-on-month to $48.33 billion by June 24, the lowest level in more than three months, data from Central Bank of Nigeria (CBN) showed on Wednesday, according to Reuters.

The reserves, however, were up 30.86 percent year-on-year, compared with $36.93 billion the same time last year.

Meanwhile, the naira fell against the dollar to its weakest in over a week on the inter-bank market as the CBN failed to intervene in the market on Wednesday, traders said.

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The naira closed at N161.55 to the dollar, its weakest since June 14 when it closed at N162.7 to the dollar. The naira closed at N160.50 to the dollar the previous day.

“Demand for the greenback remains strong in the market, while the sales of $12 million by Agip was too little to support the naira”, one dealer said.

Traders said the central bank failed to sell dollars directly to some banks outside its regular twice-weekly auction as it had done in the last two weeks, causing the naira to lose value.