The Governor of the Central Bank of Nigeria, Mr Godwin Emefiele says Nigeria’s external reserves, which currently stands at $35bn will sufficiently cover seven months of imports of goods and services.
He spoke during the 55th Annual Bankers Dinner organised by the Chartered Institute of Bankers of Nigeria in Lagos.
He said the decline in crude oil earnings as well as the retreat by foreign portfolio investors significantly affected the supply of foreign exchange into Nigeria.
In order to adjust for the decrease in the supply of foreign exchange, he said the naira depreciated from N305/$ to N360/$, and subsequently to N380/$.
Emefiele said due to the decline in foreign exchange earnings and successive exchange rate adjustments, the CBN has continued to implement a demand management framework, which is designed to bolster the production of items that can be produced in Nigeria, and aid conservation of the nation’s external reserves.