Central Bank of Nigeria
External Sector, Nigeria, Fourth Quarter
The external sector came under more severe pressure during the fourth quarter of 1990. This was attributed to developments in both foreign exchange receipts and outpayments. While foreign exchange receipts declined by 9.1 per cent, outpayments rose by 23.4 per cent from their levels in the third quarter. As a result of these developments, the overall movement in foreign exchange, which showed a slight surplus in the third quarter of 1990 vis-a-vis the fourth quarter of 1989, turned around to a deficit of $390.3 million in the fourth quarter of 1990. This is significant since it was the only quarter when a net outflow was recorded in 1990. The high debt service payments which rose by 75.0 per cent over the third quarter's level accounted for the huge rise in outpayments. The decline in receipts, coupled with the rise in outpayments, resulted in the decline in the stock of external reserves held by the Central Bank from $3,454.2 million in September 1990 to $3,304.8 million in December 1990. At this level, the reserves could finance 4.5 months of foreign exchange commitments at the prevailing average rate of disbursement compared with 6.4 months in the preceding quarter and 3.4 months in the corresponding quarter of 1989.
CBN Economic and Financial Review
Central Bank of Nigeria (1990). Developments in the External Sector During the Fourth Quarter of 1990. CBN Economic and Financial Review. 28(4), 31-35.