Nigeria’s foreign reserves down by 20 per cent

Nigeria’s foreign exchange reserves fell to $34.38 billion by January 28, down 20.3 per cent from $43.16 billion a year earlier, owing to drawdowns by the Central Bank of Nigeria to defend the naira.

Data from the central bank on Friday showed the reserves of Africa’s biggest economy have steadily declined, falling 0.43 per cent month-on-month.

The naira has remained under pressure, trading outside the central bank’s target band of 160-176 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