Foreign exchange reserves fall to $34.38bn

Foreign exchange reserves fell to $34.38 billion by Jan. 28, down 20.3 percent from $43.16 billion a year earlier, owing to drawdowns by the Central Bank of Nigeria (CBN) to defend the local currency, the naira.

Data from the CBN on Friday showed the reserves of Africa’s biggest economy have steadily declined, falling 0.43 percent month-on-month from December, when they stood at $34.53 billion.

Read also: Foreign exchange reserves rise by 1.05 per cent by May 15

The naira has remained under pressure, trading outside the central bank’s target band of 160-176 to the dollar as oil prices plunge.

This is despite a devaluation meant to find the currency’s true value and shore up Nigeria’s foreign reserves.