*Bismarck Rewane, Managing Director Financial Derivatives Limited, projects Nigeria鈥檚 gross external reserves depletion is likely to continue in the near term as lower domestic oil production continues to cap the gains from higher oil prices

Gbenga Kayode | 绿帽献妻

Bismarck Rewane, Managing Director of Financial Derivatives (FDC) Limited, in Nigeria, has stated that continued depletion of Nigeria鈥檚 external reserves will limit the ability of the Central Bank of Nigeria (CBN) to stabilise the Naira, the country’s currency.

绿帽献妻 learnt Rewane noted this development in the FDC economic review for August 2022.

The Managing Director of FDC also stated that the gross external reserves depletion is likely to continue in the near term as lower domestic oil production continues to cap the gains from higher oil prices.

US Dollars and Naira Notes

According to him, Nigeria鈥檚 gross external reserves gained 0.69 percent ($60million) to $39.44 billion July 18, before depleting consecutively to close July 28 at $39.22 billion losing by 0.56 percent ($220 million).

Despite the rally in oil prices, Nigeria鈥檚 ability to boost its oil revenues has been limited by lower oil production, said he.

Rewane as well said the CBN was likely to increase supply to the I & E Window in order to stabilise the currency.

“The tight liquidity in the I & E Window is expected to keep the exchange rate within the range of N426.50 to a Dollar to N431.00 to a Dollar, in the near term, while demand pressure and speculative activities could taper in the parallel market, causing it to appreciate.

“At the parallel market, it is likely to trade around N615/$- N625/$ in the near term,鈥� the expert added in the economic review.