According to data obtained from the Central Bank of Nigeria on Monday, the country’s external reserves decreased by $427.14 million in a single month.
This occurred as the scarcity of new naira notes exacerbated the country’s currency crisis.
According to information obtained from the CBN regarding the movement of foreign reserves, the reserves decreased from $37.21 billion on January 18 to $36.79 billion by February 16, 2023.
After announcing the plan to redesign naira notes last year, CBN Governor Godwin Emefiele stated that one of the policy’s goals was to remove currency from bank vaults.
He urged Nigerians to use alternative payment methods that would propel the country’s digital payment systems.
However, the President, Major General Muhammadu Buhari (retd.), was unable to meet the deadline because the new naira notes were in short supply. directed the recirculation of the old N200 note and stated that it would be legal tender until April 10, 2023.
Even though depositors were not given new naira notes in return, the Deposit Money Banks began collecting the old N500 and N1,000 on Friday.
There were pockets of protests across the nation that had resulted in the loss of lives and property as a result of the difficulties brought on by the scarcity.
“In the last few weeks, with the cash squeeze and the purchasing ability of Nigerians greatly impaired by the shameless implementation of the policy, the economy has witnessed a significant bashing with a report stating that the real sector witnessed about 40% drop in productive activities,” the Nigeria Employers’ Consultative Association stated in a statement. Employees lose thousands of productive hours each day waiting in line, and many are unable to even get to work as the cash crunch continues.
The “RT200 FX Programme” was launched in 2022 by CBN Governor Godwin Emefiele to increase the country’s forex supply over the next three to five years through the non-oil sector.
 He stated, “The RT200 FX Programme is a set of policies, plans, and programs for non-oil exports that will enable us to achieve our lofty but attainable goal of $200 billion in FX repatriation, exclusively from non-oil exports, over the next three to five years.” This amount will be repatriated entirely from non-oil exports.