Naira faces tough time as foreign reserves fall to $39.2b


By Collins Nweze

 

The continued stability of the Naira against the dollar and other global currencies has become a big concern.

A member of the Central Bank of Nigeria (CBN)-led Monetary Policy Committee (MPC), Prof. Adeola Adenikinju, has warned that the naira faces big challenge ahead unless certain conditions in the economy challenging the local currency’s stability are addressed.

In his personal statement to the CBN, the Research Professor at the Centre for Econometrics and Allied Research, University of Ibadan, Prof. Adenikinju, said the fall in foreign reserves and deterioration of current account balances are red signals pointing a difficult time ahead for the Naira.

The naira depreciated at the Investors’ & Exporters’ (I&E) windows by 0.49 per cent to close at N363.49/$ from N361.7/$ but the local currency has stayed around N306.95/$ at the official market.  Gross external reserves declined further by 1.16% to  $39.24billion from $39.7 billion at the beginning of…



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