NIGERIA'S RESERVE DROPS $1.8bn UP TO MONDAY

Nigeria's foreign reserves has finally dropped below $46bn as it stood at $45.989bn last Monday August 27, according to figures obtained from the Central Bank of Nigeria.

This means that between July 4 this year when it hit a high of $47.798bn, and last Monday, it declined by $1.809bn or 3.78% in less than 2 months.

It fell into $46bn range on August 6, and sliced down further each working day to finally close at the $45bn range last Monday.

The figure though is still $14.227bn higher than the level about a year ago on August 26, 2017.

However, at the peak of July 2, this year, the gap was $16.18bn or more than 50% of , August 26 2017's $31.761bn.

The reserve position had improved rapidly at the beginning of this year especially in March when it  crossed from $42bn range in March 5 then into 44bn by the 12 the and 45bn by the 19th.

It finally crossed into $47bn on April 16, this year.

The rate of decline could most likely increase in the days ahead because it looks like the dive in Oil and gas contribution to the GDP in 2nd quarter reported recently by the  national  bureau of statistics is impacting negatively on foreign earning.

At the same time, inflow of  capital especially for money market dropped with no compensating increase in flow to other sectors.

Yet, 2019 elections are around the corner with its own additional pressure on foreign reserves given heavy dependence on foreign inputs.

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