Why Foreign Reserves Fall to $44bn ― CBN

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Central Bank of Nigeria Headquaters, Abuja

The Central Bank of Nigeria (CBN), Wednesday explained that recent reduction in the level of foreign reserves does not have to do with political actors.

Director of Corporate Communications at CBN, Isaac Okorafor said foreign reserves fell “because of global squeeze on emerging markets, which was consequent upon increasing interest rates in the United States of America.

Okorafor who spoke during the CBN Special Day at the ongoing 13th Abuja Trade Fair said other developing and emerging markets like Turkey, Brazil, South Africa, Argentina and even China were facing similar dilemma.

He gave the assurance, however, that despite the fall, the present $44 billion was capable of financing between 14 and 17 months imports which are way above internationally acceptable three months.

He also gave assurance to customer of defunct Skye Bank that their deposits were safe in the succeeding Polaris Bank.

Okorafor declared that Polaris Bank has been duly registered by Corporate Affairs Commission (CAC) and licenced by CBN.

He noted that the overall impact of CBN’s numerous interventions will continue to enhance the operational capacity of Small and Medium Enterprises (SMEs).

These interventions the CBN said, “has translated into a reflation of our economy with attendant growth and development.”

The CBN he said will continue to ensure that it delivers on its core mandate of ensuring monetary and price stability. However, it cautioned that “it will also continually roll out proactive and innovative policies which would ensure that all economic sub-sectors especially the SMEs in Agribusiness receive the desired support.”

According to Isaac Okorafor, “we are determined to ensure that Nigeria’s economy remains in a state of consistent growth even as we focus on economic diversification and national food sufficiency.”

Speaking earlier, President, ABUCCIMA, Prince Adetokunbo Kayode had commended the apex bank for being focused and visionary in the regulation, preservation and stabilization of the integrity of our currency.

“In the area of Development Finance, has ensured the supply of finance to various sectors of the economy which has promoted the growth of the economy in a holistic manner making development, welfare improvement to proceed at a faster rate.

“Similarly, the Nigerian Payments System has witnessed remarkable achievements in the recent past, with the introduction of a number of initiatives under the Payments System Vision 2020.

“The Monetary Policy Committee of the bank which has the responsibility of formulating monetary and credit policy has also done remarkably well in either adjusting of retaining key indicators.”

Kayode said the 13th Abuja International Trade Fair seeks to promote accelerated development of commerce and industry; promote revitalization and diversification of the Nigerian economy by promoting the nation’s non-oil exports; direct attention to the role of private sector in the Nigerian economy; provide access to resources and technology findings; and attract foreign investment into the Nigerian economy (Tribune)

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