Nigeria’s foreign exchange reserves fell $427.14 million this month, data from the Nigerian Central Bank showed on Monday. This is due to the fact that the currency crisis in the country was exacerbated by the shortage of new naira banknotes.
According to CBN’s foreign exchange reserves movement data, foreign exchange reserves, which stood at $37.21 billion as of January 18, decreased to $36.79 billion at the end of February 16, 2023.
Emefiele said that one of the goals of the policy is to withdraw currency from bank vaults.
He urged Nigerians to use alternative payment channels that will improve Nigeria’s digital payment system. Due to a shortage of new Nair banknotes after the deadline, President Muhammadu Buhari (ret.) ordered the redistribution of the old N200 banknotes, adding that they would remain legal tender until April 10, 2023.
The savings bank also began withdrawing the old N500 and N1000 from Friday without issuing new naira banknotes to depositors.
The hardship caused by the shortage sparked protests across the country, resulting in loss of life and property. “The economy has taken a severe toll in recent weeks as the demonstrative implementation of policies has cut funds and seriously eroded Nigeria’s purchasing power,” the Employers’ Council of Nigeria said in a statement. Industrial activity decreased by about 40%. As the financial crisis continues, employees are losing thousands of productive hours every day waiting in line, and many of them can’t even work.”
CBN President Godwin Emefiele launched the ” RT200 FXProgram” for 2022 to increase the country’s foreign exchange supply through the non-oil and gas sector over the next three to five years. “The RT200 FX program is a set of non-oil export policies, plans and programs that will allow only $200 billion of non-oil exports to be repatriated, which is our ambitious but achievable goal that we achieve within three to three days. Next year. five years,” he said.