At the parallel market, besides ending 2015 on a negative note, the fall in the value of naira also spilled into 2016, with the local currency still trending above N260 to the dollar. Specifically, the naira, currently exchanging for N265 to the dollar at the parallel market, is now weaker by 38.7 per cent, compared to a year ago when it exchanged for N191 to the dollar.
 
Similarly, the nation’s foreign exchange (forex) reserves lost $6.6 billion, from December 2014 record of $35.7 billion to $29.1 billion as at December 30, 2015. The development, which showed an 18.5 per cent decline in the last one year, also revealed how foreign exchange reserves started its downward trend, a situation which authorities have blamed on speculative attacks, unchecked importation and falling foreign exchange earnings.
 
The falling profile of the reserves had, in the last one month, recorded a 2.6 per cent drop from $29.91 billion, despite policy measures put in place to check the demand pressure that depletes it.
 
Notwithstanding, the Central Bank of Nigeria (CBN), barring unforeseen circumstances, would be rolling over N136.2 billion maturing bills as the money market activities pick up this week. The maturing treasury bills would include: 91-day; 182-day; and 364-day securities worth N25.4 billion; N25 billion; and N85.8 billion respectively, which would be simultaneously rolled over.
 
The treasury activity, which would be the first in 2016, will be followed in a fortnight, by similar transactions worth N196 billion, made up of N36.8 billion for 91-day bill; N39.2 billion for 182-day bill; and N120 billion for 364-day bill.

The paper issuance programme is part of the N1.22 trillion (about $6.13 billion) treasury bills plan, which started from December 17, 2015 and would run through March 3, 2016, in which CBN would auction N245.77 billion worth of 91-day bills and N238.51 billion worth of 182-day paper. From this month through March 3, the apex bank will also auction its 364-day paper bills worth N735.54 billion.

The forex reserves fell to the lowest since July 1, 2015, when it reached $29.07 billion as the CBN used it to support the ailing naira value in the wake of falling global oil prices.