Nigeria’s foreign reserves fall to $34.51bn

Nigeria’s foreign exchange reserves fell to $34.51 billion by January 13, down 20.2 percent from $43.24 billion a year earlier, owing to draw-downs by the central bank to defend the local currency, the naira.

Data from the central bank on Thursday showed the reserves of Africa’s biggest economy have steadily declined, falling 3.2 percent month-on-month from December, when they stood at $35.66 billion.

The naira has remained under pressure, trading outside the central bank’s target band of N160-N176 to the dollar, as oil prices plunge. This is despite a devaluation meant to find the currency’s true value and shore up Nigeria’s foreign reserves.