TheCable

Nigeria’s foreign exchange reserves have fallen by $940 million (N185 billion), a 2.97 percent from what was obtainable in August, the Central Bank has confirmed.

The reserves now stand at $30.69 billion – a short fall from $31.63 billion on the figures from a month earlier – and 22.42 percent less than it was in September 2014.

The central bank has been reported to have used the reserves to support the local currency, selling dollars to bureau de change operators.

This the apex bank does twice a week, in a bid to narrow the gap between the official and black market rates.

In August, the CBN indicated that foreign exchange reserves rose by $350 million (N70 billion) to $31.43 billion.

The sale of about $80 million by CBN on a weekly basis to BDC operators is aimed at narrowing the margin.

The reserves increase crossed the $30 billion mark in July, rising by 5.6 percent from $29.03 billion in June to $30.69 billion.

The dwindling experienced so far has been attributed to efforts of the present government to plug leakages and demand management by the apex bank.

The central bank restricted access to foreign exchange last month, introducing tight control of the foreign exchange market to curb speculation and conserves forex reserves.