The nation’s foreign exchange reserves have dropped to a three-month low of $47.303bn, data from the Central Bank of Nigeria showed on Wednesday.

The reserves, which stood at $47.697bn on July 11, dropped by $394m in 13 days.

Data from the CBN revealed that the reserves rose from $47.333bn in April 24 to $47.846bn on May 11.

It was reported on July 13 that the reserves, which rose from $47.605bn on May 31 to $47.789bn on June 29, dropped by $102m to $47.697bn on July 11.

The Managing Director, Blackbit Limited, Wale Ajibade, in a telephone interview with our correspondent, stated that the drastic decline in the reserves could be attributed to government action in supporting the exchange rate.

He said, “This is what is putting pressure on the external reserves. I believe that a free market should be allowed, but it is a complex situation because the exchange rate can go up and lead to heightened inflation. But in the long run, the exchange rate would likely see a further demolition in value because of the support.”

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