Forex Account Depletion
Expectedly, the marginal drop in the nation’s foreign exchange account has continued to take its toll on the foreign exchange market. According to data from the Central Bank of Nigeria (CBN), the nation’s foreign exchange reserves dropped by 0.16 percent month-on-month to $48.33 billion by June 24, the lowest level in more than three months.
What the current scenario has confirmed is the fear that any economy that relies so much on the appetite of portfolio investors for the growth of its foreign reserves will become vulnerable in times of turmoil in foreign lands. As naira value drops with the attendant erosion of the value of Nigerian exports, the onus lies on the CBN to make appropriate intervention in all the segments of the foreign exchange market in the interest of the nation’s economy.