Nigeria's foreign exchange reserves declined by $990.98 million in twenty-three days to $46.13 billion by August 23, data from the Central Bank of Nigeria (CBN) has shown.
The country's buffer stood at $47.11 billion at the end of July, data published on the website of the regulatory bank showed.
Analysts attributed the drop in the country's forex reserves was as a result of capital flights by foreign portfolio investors in recent time as the economy experience some slow down.
Nigerian stock market has experienced a major decline with the main market index down more than 10 percent after some offshore sold down their position in the market.
A former President, Association of National Accountants of Nigeria, Sam Nzekwe said political uncertainties had led to a decline in foreign investment as many investors were taking their funds out of the country.
“So, I believe that what must have happened is that those of them whose investments are short-term like shares and bonds, have found their way out of Nigeria,” he added.
“So, I believe that what must have happened is that those of them whose investments are short-term like shares and bonds, have found their way out of Nigeria,” he added.
He added that although the government was investing in infrastructure, the investments in infrastructure were mostly being constructed by foreigners with foreign materials.
He said, “So basically, it will have some impact on the reserves but I believe that the major one is the foreign investment in the financial market and they are all short-term investments.”
He said, “So basically, it will have some impact on the reserves but I believe that the major one is the foreign investment in the financial market and they are all short-term investments.”
Analysts believed the decline in the forex buffer could impact on the country's currency exchange in the coming week as pressure mounts on the available dollars.
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