The nation’s external reserves recorded a modest decline last week, contrary to speculations that Federal Government’s new policy on downstream oil sector liberalization would extend its foreign exchange-related pressures on the reserves.

Gross foreign reserves had opened at USD26.787 billion on Thursday, May 12, a day after the Federal Government announced liberalization of petrol imports, directing importers to the autonomous market for sourcing the required foreign exchange, a decision which immediately sparked off speculative pressures on the parallel market.

At close of business last Thursday, May 19, the reserves was USD26.587 billion.

Though at USD200 million or 0.75 per cent decline, the reserves went down at higher rate week-on-week compared to the preceding week decline of 0.49 per cent, banking industry operators believed there was no transfer of pressure on the reserves as the Central Bank of Nigeria, CBN, maintained its usual trading positions in terms of both volume band and exchange rate.