Data from the FMDQ shows a slowdown in the interventions by the Central Bank of Nigeria (CBN) in the Investors and exporters (I&E) segment of the foreign exchange market.
The CBN funding of the I&E window fell to $2.9 million in February 2021 from as high as $558 million in October last year and $74 million in January.
All other sources of funding fell also except for inflows from non-bank corporates which increased by 54 percent to $350.1 million in February 2021, compared to $227.2 million in January (see table).
The CBNs external reserves fell by 5.7 percent between late January 2021 and March to $34.4 billion, from $36.5 billion.
The external reserves had trended upwards at the beginning of the year 2021, gaining 3.2 percent as at January 25.
Analysts say challenged oil inflows due to OPEC cuts, weaker foreign investment inflows, high demand for foreign currency to finance imports and other needs and possible clearance of FX backlogs are factors that will continue to weaken External Reserves.