Foreign reserves fall by $ 180 million in two weeks

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The country’s external reserves have lost $ 180 million in two weeks, the latest figures from the Central Bank of Nigeria showed on Sunday.

According to the figures, reserves, which stood at $ 33.28 billion on July 1, fell to $ 33.09 billion on July 12 before edging up to $ 33.1 billion on July 15.

Reserves lost $ 905.5 million in June, after falling to $ 33.32 billion at the end of June from $ 34.23 billion on May 31.

Reserves stood at $ 34.88 billion at the end of April 30, according to the CBN.

A member of the Monetary Policy Committee, Adeola Adenikinju, said at the last meeting that as a country, overdependence on oil for income and currency livelihood is no longer sustainable in the medium to long term.

He said, “We need to diversify the economic base and income of the economy to reduce our exposure to external shocks and prepare the economy for the global shift from fossil fuels to the green economy.

“This should not be the status quo for our policymakers. The economy also needs a strong buffer to mitigate external volatility. ”

Another MPC member, Ahmed Aliyu, said that beyond falling oil prices, there was the growing paradigm shift from oil to a green economy which posed a threat to future demand for oil.

The CBN report at the end of the MPC meeting showed that the share of fossil fuels was set to drop from 85% of total primary energy demand in 2018 to between 20 and 65% by 2050.

He said the demand for crude oil is expected to decline, driven by the shift from electric, hydrogen and biofuel means of transportation.

He stressed the need to diversify the Nigerian economy.

He said that in addition to adopting new technologies that support the green economy agenda, Nigeria’s development goals should also focus on encouraging the promotion of non-oil exports to improve the country’s trade balance. countries and increase the accumulation of external reserves.

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