Nigeria Economic Update (Issue 39)

Issue 39

Nigeria’s external reserve fell marginally by from $25.36 billion to $25.16 billion. The decline likely reflects the continued sales of dollar by CBN amid fall in oil revenue. Similarly, the naira/dollar exchange rate depreciated marginally by 0.5 percent to N424/$ at the parallel segment as also seen in preceding weeks. The continued depreciation likely points to banks’ low level compliance to CBN’s dollar sales directive made in August, 2016, thus creating artificial dollar scarcity in the parallel market. 

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