The country’s foreign exchange reserves continued its downward trend as it dropped from $39.8bn on November 11 to $39.24bn on December 13, latest figures from the Central Bank of Nigeria revealed.
The CBN Governor, Mr. Godwin Emefiele, said that Nigeria’s overdependence on crude oil in the oil market was transmitted entirely to the economy via the forex markets as manufacturers and traders who required forex for input purchases were faced with dwindling supplies.
He further said the CBN introduced a demand management approach in order to conserve the country’s reserves and support the domestic production of certain goods in Nigeria. Adding that the approach was to help manage oil production in Nigeria.